Summary Optex Systems Holdings is a niche defense optics supplier with dominant US periscope market share and strong exposure to defense budgets. OPXS benefits from recurring contracts, international expansion, and potential wins on new defense platforms, though growth depends on capacity and program selection. Relative to the aerospace and defense sector, OPXS trades at a significant discount, with a 20.35x trailing P/E versus the industry’s 43.3x. I assign OPXS a buy rating, targeting $20.50 (35% upside), assuming continued EPS growth and a 15x 2027 P/E multiple. Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » The future of warfare is unlikely to be with land vehicles and main battle tanks. However, we do note that the US Army is looking for a replacement for the Bradley Fighting Vehicle, and work is under way More on my IG service If you want full access to all our reports, data and investing ideas, join The Aerospace Forum, the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform. This article was written by Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Ducommun (DCO) downgraded to Buy as shares look fully valued; Q3 sales +6% amid defense strength. Read here for an investment analysis.

AerSale Corporation is rated Buy with higher risk investment opportunity, driving upside on MRO pivot. Learn more about ASLE stock here.

Micron Technology, Inc. remains a strong buy as AI demand boosts HBM pricing, revenue, and margins. Click here to read my latest analysis of MU stock.

Taiwan Semiconductor Manufacturing Company Limited Q4 beats estimates as 3nm and HPC demand surge. Click for this updated look at TSM stock post earnings.

AAR Corp targets $120.81 with 28% upside as strong aerospace demand drives growth, Q2 EPS is up 31%, and leverage is 2.49x. Learn why AIR stock is a strong buy.

Lockheed Martin beat the S&P 500, but upside may be just 9% to a $629.83 target.

ATI Inc. gets a Strong Buy and $139.78 target on aerospace/defense growth, 15% EBITDA CAGR, rising FCF and lower leverage.

BE Semiconductor Industries N.V. gains from AI-driven CoWoS/HBM packaging demand as orders surge 105% YoY; margins and FCF expand. Read my BESIY stock update.

Lam Research stock is upgraded to Buy as wafer fab spending rises and memory supply bottlenecks persist. Click here to read my latest analysis of LRCX stock.

Summary flyExclusive, Inc. stock surged after announcing it will become an authorized Starlink Aviation dealer, installing high-speed connectivity on its fleet and for MRO clients. Despite the Starlink deal, the incremental revenue impact is modest, with Starlink-related revenues projected to account for only 1.5% of sales by 2028. Current FLYX stock valuation reflects most of the Starlink upside, and the stock now trades around fair value with limited near-term catalysts. I am downgrading FLYX stock to a Sell, citing the recent price surge, increased downside risk, and a favorable profit-taking opportunity. flyExclusive, Inc. (FLYX) stock has surged more than 100% following the news that it will become an authorized Starlink Aviation dealer, installing high-speed in-flight connectivity on its own fleet and for maintenance, repair, and overhaul clients. In More on my IG service If you want full access to all our reports, data and investing ideas, join The Aerospace Forum, the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform. This article was written by Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Summary AeroVironment is downgraded from "Buy" to "Hold" as the stock price exceeds fundamentals and my revised $319.83 target. Growth expectations remain robust, with sales CAGR at 37.7% and EBITDA CAGR at 49%, but upside is now limited. EBITDA margins are set to rebound post-BlueHalo acquisition, and free cash flow conversion is expected to improve sharply by 2028. Strong sentiment and defense sector momentum may push AVAV higher short-term, but valuation normalization is likely; trimming positions is prudent. Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » In December, I reiterated my "Buy" rating for AeroVironment, Inc. (AVAV) with a $309.90 price target. As I am writing this report, the stock price has risen 30.8% to $318.48, surpassing my price target and outperforming the S&P 500, which gained only 0.9%. Generally, I am happy More on my IG service If you want full access to all our reports, data and investing ideas, join The Aerospace Forum, the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform. This article was written by Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Summary Hensoldt AG ADR remains a buy despite a 10% decline following Investor Day, with long-term upside driven by European defense spending and electronics demand. The company's growth profile is back-end loaded, with revenue acceleration and margin expansion expected to intensify after 2026, supported by Operations 2.0 capacity expansion. Near-term headwinds include higher CapEx, rising R&D, and softer margin improvement, which have led to downward revisions in EBITDA and free cash flow estimates. HAGHY stock valuation offers 11% upside for 2026 and 38% for 2027, though near-term performance is pressured and peer group multiples are a key sensitivity. Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » Hensoldt AG ADR (HAGHY) has fallen around 10% since my last report, significantly underperforming the S&P 500’s (SP500) 1.9% gain. The European defense-electronics and optronics specialist came under pressure following its recent Investor More on my IG service If you want full access to all our reports, data and investing ideas, join The Aerospace Forum, the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform. This article was written by Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

V2X stock has outperformed peers, driven by defense budget optimism. Read more on what investors can expect in 2026 for VVX stock.

Indra Sistemas, S.A. is upgraded to Strong Buy, with a new price target of $46.68, reflecting 34% upside. Learn more about ISMAY stock here.

Broadcom Inc. is rated a Strong Buy driven by robust AI-fueled growth and impressive Q4 results. Learn more about AVGO stock here.

Planet Labs sees strong defense and intelligence demand as backlog hits $734 million. Click to learn more about PL's valuation, outlook, and stock prospects.

Summary InPost S.A. received a takeover bid valuing the company at $6.6 billion or more, triggering a 26% stock surge. Despite a recent 43% rally, INPOY's long-term share price performance has lagged due to margin erosion and high capital expenditures. The $6.6 billion offer undervalues INPOY relative to 2026–2027 earnings forecasts, but margin and cash conversion risks limit upside. I downgrade INPOY to Sell, recommending investors lock in profits following the acquisition-driven price pop. Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More » InPost S.A. (INPOY) (INPOF) stock surged 26% after the company indicated that it had received a takeover bid for all its shares. I marked InPost shares a Strong More on my IG service If you want full access to all our reports, data and investing ideas, join The Aerospace Forum, the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform. Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Delta Air Lines remains a buy with a $85.81 price target, reflecting 24% upside potential and robust EBITDA growth expectations.

Summary Rocket Lab is rated a sell due to excessive valuation disconnected from near-term financial prospects. RKLB's 2026 will be pivotal, with the first Neutron rocket launch and expected positive EBITDA and operating cash flow. Despite defense growth and increased launch cadence, sales and EV/EBITDA-based valuations indicate 20–38% downside risk. Current bullish sentiment has driven RKLB's share price far ahead of its fundamentals, warranting caution. Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » Rocket Lab (NASDAQ:RKLB) stock has gained 88% since my last report, in which I marked the stock a buy after the share price declined following the delay of the first launch of the Neutron rocket. In this report, I discuss More on my IG service If you want full access to all our reports, data and investing ideas, join The Aerospace Forum, the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform. This article was written by Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Rolls-Royce retains a Buy rating. Can RYCEF stock continue its climb? Read here for more on what could be next for this aerospace giant.

Northrop Grumman (NOC) is well positioned to win the Navy's F/A-XX contract. Read what this deal may deliver for investors in this defense giant.

Boeing stock shows renewed demand with Alaska Airlines’ 145-jet order, boosting the 737 MAX 10 backlog. Click here to learn more about BA.

Summary MTU Aero Engines AG remains a Strong Buy, with a base case price target of $544.25 and significant undervaluation versus aerospace peers. Despite recent underperformance, MTUAF's improved EBITDA and free cash flow CAGRs, plus a net cash position, highlight robust fundamentals and upside potential. MTUAF's diversified commercial and military engine portfolio underpins growth, with OEM sales driving high-margin aftermarket opportunities. Market fixation on a 32.7x P/E ratio overlooks MTUAF's superior cash conversion, capital efficiency, and relative value compared to peers trading at 43x P/E. Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » MTU Aero Engines AG (MTUAY) (MTUAF) received a Strong Buy rating in my last report. However, the aerospace and defense stock remained flat, underperforming the S&P 500’s (SP500 More on my IG service If you want full access to all our reports, data and investing ideas, join The Aerospace Forum, the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform. This article was written by Dhierin-Perkash Bechai is an aerospace, defense and airline analyst. Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more. Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

FTAI Aviation Preferred Series C: 8.1% yield but likely 2026 redemption cuts returns.