Today (February 10) he was another great day for shareholders in Filetic (LSE: FTC), because the former part of Penny jumped by 12% to 16-year-old highest level 104p. This means that in two years it gained almost 700%!

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The reason for this meteoric height is his changing partnership with SpaceX Elon Musk. It focuses on providing radio frequency components (RF) to handle the Satellink Spacex satellite constellation, which provides swift internet around the world.

What happened

The supplies were enormous today after preparing a up-to-date contract with SpaceX.

The CEO of Nat Edington announced: “We are glad that we have secured this significant order, which emphasizes the reputation of filtronic providing high -performance RF solutions for our leading customer on the market. This agreement, along with our growing rush on strategic markets, provides us with increased confidence in our ability to exceed our growth goals for the 2025 and FY2026 budget year.. “

The contract is valued at almost 17 million pounds and is the fourth victory of the contract with SpaceX since April 2024. Apparently this partnership with the most valuable private company in the world is deepening, which is excellent news for filter shareholders.

Quotation

In the featherlight of these messages, analysts tried to update their projections. For the current year (FY25 until the end of May), Broker Cavendish Currently, revenues are generated by 50.4 million GBP and profit per share (EPS) 5 pence. This would like an boost by 98% and 255%, respectively.

However, in the case of a budget year, an updated forecast is a revenue of 43 million GBP and EPS 3.2 pens. On this basis, the shares are commercial for the multiple of the price forward (p/e) 32.5.

Although this seems quite high, of course this does not take into account the likelihood of further winning contracts. I would not exclude this, taking into account the commercial momentum and the size of the growing global defense and space markets.

What could go wrong?

On the other hand, because SpaceX revenues become a larger share of cake, the risk of customer concentration increases.

If there were any potential product defects or if SpaceX decided to produce its own products on its own, it may be catastrophic at the price of a filter action.

Mega-cones

Almost a week does not go without spacex, adding a few more internet satellites to the mega-consolation of Starlink. On February 8, he sent another party in the amount of 21 to a low orbit, including 13 with direct abilities into cells.

In other words, they can connect to smartphones. T-Mobile For example, Starlink, now automatically connects in the US areas where no cellular network arrives.

SpaceX ultimately aims to have up to 42,000 satellites, compared to about 7,000. Building it will take several years.

Intermediate SpaceX game

For centuries I wanted to invest in SpaceX (from reading The Space Barons: Elon Musk, Jeff Bezos and the search for cosmos colonizationChristian Davenport’s book 2018). Unfortunately, it remains a private company, although it is valued at USD 350 billion.

However, filtronic probably offers an indirect way to attach driving. This says “The most modern technology … plays a key role in the implementation of the STARLINK Spacex constellation“.

Give me that the sale of the company looked higher in the coming years, assuming that it was not losing the contract. I am tempted to start the position this month.