Broker tips: Synthomer, Filtronic

(Sharecast News) - Berenberg lifted its price target on Filtronic from 360p to 440p, saying a new on‑satellite development contract underlines the company's growing traction in the space‑infrastructure market.

The analysts said Filtronic's FY26 trading update showed adjusted underlying earnings slightly ahead of consensus, with revenue and EBITDA of at least £55.5m and £11.1m, respectively. Year‑end net cash remained strong at £11.3m, despite investment in engineering and its new Sedgefield facility. Customer concentration was also shown to be easing, with SpaceX's contribution falling from 83% as defence and other clients scale up.

Berenberg said the key development was a second contract with the same unnamed US customer behind the $8m order announced in March, with the new deal, worth around $500,000, covering initial development of a high‑frequency module for on‑satellite use and was expected to lead to larger follow‑on orders. Berenberg said this supports its view that Filtronic was penetrating new parts of the space‑infrastructure value chain and building relationships with major industry players.

The German bank added that FY27 revenue was now 90% covered by the order book, giving record visibility and potential upside to estimates.

Berenberg kept its 'buy' rating and said the higher target reflects a 20% uplift to its forward revenue run‑rate assumption, driven by growing on‑satellite opportunities. While acknowledging the strong share‑price performance year‑to‑date, it stated Filtronic's long‑term growth potential across space and defence markets remained compelling.

Deutsche Bank raised its price target on Synthomer to 92p from 62p on Tuesday, but kept its 'hold' rating, saying trading momentum and portfolio performance continued to improve.

The broker said the Synthomer's AGM update confirmed strong revenue and underlying earnings growth in the first quarter, with margins ahead of the prior year and trading accelerating through April and May. It added that Synthomer's 'in‑region for region' operating model was helping the business navigate supply‑chain volatility linked to the Iran conflict.

Deutsche Bank highlighted particularly strong delivery in the coatings and construction solutions division, which drove growth in volumes, revenue and EBITDA over the first five months of 2026. Adhesive solutions was described as stable, while HPPM saw a slower start to the year.

The German bank said the update supported its view that operational progress was continuing across the portfolio.

Reporting by Iain Gilbert at Sharecast.com