What Happened?
Shares of PCB manufacturing company TTM Technologies (NASDAQ: TTMI) jumped 6.1% in the morning session after Needham raised its price target on the stock to $65 from $56, while keeping a 'Buy' rating.
The analyst firm pointed to growing confidence in TTM's future sales, especially in markets tied to AI data center infrastructure and defense, heading into the second half of 2025 and 2026. This positive view from the analyst followed TTM Technologies' recent strong financial results for the second quarter. In that period, the company beat Wall Street's expectations with both its sales and profits. Revenue jumped 21% when compared to the same period in the previous year, giving investors and analysts a solid reason for the increased optimism.
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What Is The Market Telling Us
TTM Technologies’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 3.8% as investors scooped up equities, shaking off the initial concerns inferred from the Fed's dot plot, with tech stocks leading the charge.
As a reminder, the Federal Reserve cut its benchmark interest rate by 25 basis points the previous day and signaled that more reductions could come before year-end and beyond. Initially when the cut was announced and Fed Chair Powell held his press conference, there was a pullback in the market as the Fed's "dot plot" revealed that only one cut was likely for 2026. This was below the three cuts that had been priced into the markets. This was the first interest rate cut of 2025, a move investors had widely anticipated. In response to the decision, stocks rose significantly, positioning major indexes like the S&P 500 and Nasdaq to open at record levels.
The Fed's decision was influenced by signs of a weakening labor market. Lower interest rates are generally seen as positive for stocks because they reduce borrowing costs for businesses and make fixed-income investments like bonds less attractive by comparison, driving capital into the equity market. While Fed Chair Powell noted the path forward has risks, the prospect of looser monetary policy has fueled optimism on Wall Street.
TTM Technologies is up 132% since the beginning of the year, and at $57.00 per share, has set a new 52-week high. Investors who bought $1,000 worth of TTM Technologies’s shares 5 years ago would now be looking at an investment worth $5,201.
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