Those kinds of numbers are exactly the sort of long-term returns that can turn modest stakes into life-changing wealth, potentially even millionaire status. But with the shares now around 320p, can this massive momentum really continue?

Why’s Filtronic thriving?

At its core, Filtronic designs and manufactures advanced radio-frequency (RF) components and subsystems. Its technology sits inside high‑performance links for space, aerospace, defence, and telecoms infrastructure, carrying huge amounts of data at high speed and low latency.

That’s proven to be critical for low-earth-orbit satellite constellations and secure military systems, which has transformed the business from niche RF parts supplier into a key enabler of next-generation connectivity technology.

As a result, the firm’s been winning a series of chunky contracts, dramatically upgrading Filtronic’s outlook, particularly its deepening partnership with SpaceX’s Starlink network.

But beyond SpaceX, Filtronic has secured orders from major European defence primes and additional multi‑year deals with US customers, broadening its high‑value pipeline. And institutional analysts started taking notice, with even Berenberg issuing a Buy recommendation last October.

So far, anyone who followed this tip is already sitting on a massive gain. So with Berenberg once again reiterating its recommendation in April, should investors think about buying shares today?

Explosive potential, explosive risk

Global demand for high-frequency RF solutions is growing rapidly. And with decades of expertise in this field supported by a modernised manufacturing base, Filtronic has a significant advantage over most of its peers that’s not easy to replicate.

So if satellite operators keep expanding constellations and defence budgets remain elevated, Filtronic’s order book has the potential to expand even further. For reference, the estimated market size for low-earth-orbit satellites is expected to reach $100bn by 2035!

While this is undoubtedly exciting, it’s essential not to ignore the risks this business faces. With a revenue stream sitting at around £56m against a £712m market-cap, investors are already pricing in a substantial chunk of this growth potential. That’s not necessarily a problem if the company continues to exceed expectations.

However, Filtronic has some critical weak spots. The company’s almost entirely dependent on just a handful of customers. And any delays, design changes, or reduction in follow-on orders could hit both earnings and investor sentiment hard. Moreover, with aerospace orders often very lumpy, Filtronic shares are naturally exposed to increased volatility.

So what should investors make of all this?

What’s the verdict?

For me, Filtronic’s a fascinating business. And over the long term, if it continues to execute sucessfully, this ex-penny share seems to have amazing potential to deliver substantial returns.

Having said that, I think it’s unlikely to deliver another 3,000%+ gain from today’s valuation in the near future, at least not without a major profit surprise.

As it stands, the stock’s being priced as if it’s already succeeded, which isn’t the case. There remains a long road ahead. But I think it would be wise to keep a close eye on this enterprise moving forward. And it’s not the only ex-penny share I’ve got my eye on…

Should you invest £5,000 in Filtronic Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Filtronic Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post Could former penny share Filtronic still be a millionaire-maker at 320p? appeared first on The Twelfth Magpie.

Back in August 2024, the share had already tripled since the start of that year. Since I wrote about it then, the Filtronic share price has soared 437%.

That means that, over the past five years, it is up a staggering 4,622%.

Could this just be the beginning?

Knocking at the FTSE 250 door, for now

The rise means the company now commands a market capitalisation of £935m. That is comfortably larger than many existing FTSE 250 members.

If it can sustain its current market cap, I think there is a strong chance we could see Filtronic joining that index in coming months. Index membership is due to be reviewed next month.

But I have my eyes on a bigger goal: the blue-chip FTSE 100 index.

Its smallest member by market capitalisation at the moment is Berkeley Group, with a market cap of £3.1bn. That is over triple Filtronic’s current market cap.

Still, with Filtronic’s meteoric rise in recent years, that sort of growth could be achievable.

Right place at the right time

Can that growth last?

After all, Filtronic is widely seen as a growth story but at the interim point this year, reported revenues actually showed a slight decline, from £25.6m in the prior year period to £25.3m this time around. Profit fell even more sharply, from £6.7m last time to £2.6m.

Those numbers might not seem impressive. Arguably, though, they reflect a business moving from one stage of its development to another.

Filtronic’s business with SpaceX has been very large already. But it could get much bigger from here. Indeed, in its interim results, Filtronic reported its largest ever contract with the space company, valued at $63m.

It has also been working hard to diversify its customer base as currently there is a concentration risk given how important SpaceX is to it.

Last month, Filtronic announced an order from an existing European defence customer for a new wide-bandwidth solution. The order size was modest but could lead to bigger things in future. That followed the prior month’s announcement of an $8m contract with a US firm for Filtronic’s Amplifier technology.

The manufacturer’s proprietary know-how is in demand just as space and defence demand is surging. That could see revenues and profits soar over time. It entered the second half of its current financial year with a record order book.

I’m watching not buying

I sold my Filtronic stake a while back for what I thought was a reasonable profit, though the share has since moved far higher.

Currently it sells for 101 times earnings. I see that as too pricey (and note, there have been multiple director share sales lately).

I think the company’s sales prospects are great and it has strong pricing power that could help it grow earnings. If it does that, I believe we could yet see it in the FTSE 100.

But the current share price looks too high to me. I will not be investing, but instead will hunt for other more attractively priced growth shares.

Should you invest £5,000 in Filtronic Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Filtronic Plc made the list?

Christopher Ruane holds no position in any of the companies mentioned.

The post Up 4,622%, is Filtronic heading for the FTSE 100? appeared first on The Twelfth Magpie.

To put this mind-boggling number into context, it means £1,000 invested in May 2021 would now be worth approximately £46,000. That’s the sort of return long-term investors salivate over!

Unfortunately, penny stock Filtronic wasn’t on my radar back in 2021. But I did highlight it as an under-the-radar share to consider in March 2025 when it was near 100p (it’s now 405p). It has been regularly trumpeted on these pages.

But is it still worth a look today after skyrocketing 190% in six months?

Game-changing strategic partnership

As a quick reminder, Filtronic is a radio frequency expert. Two years ago, it signed a game-changing partnership and commercial agreement with SpaceX.

This was for the ongoing supply of its E-band solid state power amplifiers for SpaceX’s Starlink platform, as well as the development of similar products at other frequency bands.

The fact that this was a long-term strategic collaboration is what really got investors excited (the stock immediately jumped almost 50% on this news). Bumper contracts soon followed, including last year’s record-breaking £47.3m deal for Filtronic’s next-generation Gallium Nitride (GaN) powered E-band technology.

SpaceX’s Starlink provides high-speed internet to users all around the world (remote locations, cruise ships, airlines, in Ukraine, etc). Given the high likelihood that this already massive satellite constellation will grow even larger in future, the company looks perfectly placed for strong growth.

Is the stock now overvalued?

The question now is, does this all look priced in? Well, analysts currently expect revenue of £61.5m for the forthcoming fiscal year (starting June). That puts the stock on a forward-looking price-to-sales (P/S) ratio of 14.5.

For the following year, the revenue forecast stands at £75m, implying top-line growth of around 22%. But when the forward P/S ratio is above 10, I would personally be looking for stronger revenue growth than this.

Meanwhile, the forward price-to-earnings (P/E) multiple is now around 100. That makes it a very pricey stock, at least relative to near-term earnings.

Another issue worth mentioning is that a couple of company insiders have been offloading shares in recent weeks. That isn’t necessarily a red flag, but it’s noticeable that there has been no buying among directors for over a year.

What about the future?

Of course, a couple of large contracts could quickly change the picture here. And with SpaceX soon getting a massive cash injection, it will probably aggressively expand its growth plans for Starlink. That’s good news for Filtronic.

Additionally, there should be plenty of defence opportunities in Europe moving forward. Filtronic already has established relationships in this booming sector, and in March signed an $8m deal with an unnamed US firm to provide satellite communications technology.

However, while I’m still bullish on the long-term growth story (and think the stock may well move back towards 500p as SpaceX IPO excitement mounts), the valuation does concern me now.

If I had a position, I’d consider taking some profits off the table. In my experience, it’s always better to be safe than sorry when a stock goes vertical in the space of just six months.

Should you invest £5,000 in Filtronic Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Filtronic Plc made the list?

Ben McPoland has no position in any of the companies mentioned. 

The post Here’s the top share on the London Stock Exchange over 5 years appeared first on The Twelfth Magpie.

In hindsight, that call was spot on – already this year the stock’s up a whopping 115% (and that’s after a 20% drop from its highs). But this big move higher begs the question: is it time to consider taking some profits on this name?

I was right about SpaceX

In January, I also said the SpaceX IPO would most likely lead to more interest in space stocks. And it has. All of a sudden, investors are scrambling for anything space related. Just look at the Seraphim Space Investment Trust – it has also more than doubled in price this year.

Filtronic has been a major beneficiary of the trend. And it isn’t hard to see why. In recent years, this wireless communications company has generated a ton of revenue selling components to SpaceX. It’s also done deals with other satellite companies.

The valuation’s rocketed

Now, this stock was expensive back in January when I highlighted it. At the time, the price-to-earnings (P/E) ratio was close to 50. Today though, we’re looking at a P/E ratio of about 120. That’s really high.

I can’t really justify that earnings multiple, if I’m honest. I was okay with a P/E of 50 but 120 looks stretched, to my mind.

The way I see it, that valuation adds a lot of risk. With sales only expected to rise 13% this financial year, the risk/reward skew doesn’t look favourable to me.

Three other red flags

I’ll point out that the valuation isn’t the only thing that spooks me here. Another issue is the chart. It’s gone parabolic. And when charts do this, it often ends in tears.

There’s also the fact that multiple directors – including the CFO and the Chair – sold stock in April (at much lower prices). This could indicate they didn’t think the valuation was justified .

One other issue to be aware of is that the average analyst price target is only 292.5p. That’s about 23% below the current share price.

Time to lock in profits?

Now, don’t get me wrong – this is a great company. I’ve been really impressed with its ability to land major deals with SpaceX. And taking a long-term view, it could turn out to be a great investment from here. After all, the space industry’s still in its infancy.

But with the stock up more than 100% year to date and 200% over 12 months, I do think it might be time to consider locking in some profits. Because it could come plummeting back to earth (it’s already getting volatile) if growth slows.

I’ll point out that one thing I often do in these kinds of situations is sell half my position. That way, I can still profit if the stock continues to rise but I also have capital to put into other opportunities.

Should you invest £5,000 in Filtronic Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Filtronic Plc made the list?

Edward Sheldon has no position in any shares mentioned

The post At 379p, is it time to consider taking profits on UK space stock Filtronic? appeared first on The Twelfth Magpie.

The AIM-listed electronics firm Filtronic (LSE: FTC) is one of its key suppliers, yet despite an estimated £1bn valuation, is yet to join the FTSE 250.

Could that all change in the next reshuffle?

What’s driving Filtronic’s epic rise?

Filtronic has become a leading story on the London market this month, with its share price rallying 53%. But its partnership with SpaceX isn’t a new development.

In 2024, SpaceX bought a 10% stake in the company, back when its market cap was a mere £79m. It has since increased by over 1,000%, with some estimates putting it at a £1bn valuation.

The SpaceX connection

Filtronic supplies high-frequency power amplifiers and E-band modules used in SpaceX’s Starlink satellite constellation. 

But it’s not just a supplier with a casual customer relationship. It has a multi-year strategic partnership with the company, which has already produced real orders and real revenue. 

The first was an initial £15.8m production order, followed by a much larger £47.3m contract for gallium-nitride E-band satellite-comms hardware.

That matters because investors can see a clear line between the partnership and Filtronic’s growth. But the next question is: can that growth keep going?

Could a listing change the story?

A SpaceX IPO would almost certainly attract more attention to the companies linked to it, and Filtronic is one of the clearest UK names in that group.

Markets often re-rate suppliers when the customer is famous, growing fast, and tied to a big theme like satellite broadband.

Still, a listing would not guarantee more revenue on its own. The price can move on excitement, but the business still has to deliver.

So what does the current financial picture say?

Is it a buy?

Here is the simple case for and against Filtronic:

The valuation suggests strong momentum, but also a lot of optimism already priced in. Like many before it, Filtronic’s growth story shows incredible progress, but is almost entirely dependent on one customer.

If SpaceX falters – or changes its supplier – the share price could tank quickly. That’s the bit investors need to think about very carefully.

FTSE 250 contender?

So, will Filtronic join the FTSE 250? For now, that remains a probability rather than a certainty.

The market cap is big enough to make it a serious contender, but index changes depend on the numbers at the review date, not just the story.

For investors who want direct, UK-listed SpaceX exposure, it’s worth giving serious thought to.

At the same time, funds like Scottish Mortgage Investment Trust or Baillie Gifford US Growth Trust offer arguably safer, albeit less direct, exposure to the company.

One thing is for sure, as the SpaceX IPO draws nearer, I’m going to be keeping a very close eye on developments.

Should you invest £5,000 in Filtronic Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Filtronic Plc made the list?

Mark Hartley owns shares in Scottish Mortgage Investment Trust.

The post Could this £1bn AIM stock join the FTSE 250 off the back of the SpaceX IPO? appeared first on The Twelfth Magpie.

Is the growth stock still worth considering after these high-octane gains? Let’s discuss.

Two new deals announced

From an operational perspective, Filtronic – which specialises in advanced wireless communications solutions – continues to go from strength to strength. Recently, it announced a number of new deals.

For example, on 26 March, it announced an $8m contract with a US company to design, develop, produce, and qualify amplifiers for satellite communications. Shortly after this, on 1 April, it announced that it had been selected by a major European defence prime for the initial phase of a new technology programme and that it had won an initial contract for wide-bandwidth solutions worth £0.4m.

These deals are no doubt encouraging. They signal that the company’s technology is in demand.

The stock is expensive now

Looking at the company from an investment perspective, however, I have a few concerns today. I am no longer as bullish as I was back in January.

One issue for me is that the share price has risen a long way in a very short space of time amid excitement around space stocks (the SpaceX IPO has fuelled this). And as a result, the company’s valuation is now extremely high.

At present, City analysts forecast earnings per share of 3.69p for the year starting 1 June 2026. So, at today’s share price of 404p, we have a price-to-earnings (P/E) ratio of 109.

I was comfortable with a P/E ratio near 50 back in January. But near 110, the risk levels here are very high.

I’ll point out that analysts at Berenberg recently raised their target price to 360p (not far below the current price) so they appear to see the current valuation as justified. Personally though, I see it as overstretched.

Insiders are selling shares

Another issue for me is that directors have recently been selling stock. In April, three different directors offloaded shares.

Now, insiders sell shares for many reasons (eg, buying a house, paying tax, paying for school/university fees). However, when multiple insiders are selling stock simultaneously it can be a bit of a red flag.

It’s worth noting that among those selling were the CFO and the chair. These are top-level insiders and they are likely to have the most information on the company.

Still worth it?

Given the high valuation and the insider selling, I don’t see the stock as one to consider today. To my mind, the risk/reward set-up is not attractive at current levels.

If the stock was to experience a material pullback (to say 240p to 270p), however, it could be worth considering. Because there’s no doubt that the company has long-term growth potential.

The post Up 130% in 2026, can FTSE space stock Filtronic continue to soar? appeared first on The Twelfth Magpie.

To put that number into perspective, a £5,000 investment made in early May 2001 would now be worth roughly £164,000!

Yet I think this stock could head even higher in the coming years. Here’s why.

Game-changing partnership

For those wondering what Filtronic does, it’s a maker of advanced radio frequency (RF) solutions for the aerospace and defence, space, and telecoms infrastructure markets. So that’s various filters, transceivers, amplifier systems, and so on.

The firm is a leader in E-band solid state power amplifiers (SSPAs). As it points out: “Companies like SpaceX have received the approval to use E-band (71-86GHz) frequencies for its Starlink-network, and it’s a sign of where the satellite industry is heading… E-band delivers high-capacity, low-latency connectivity ideal for next-generation satellite networks“.

Filtronic already supplied SpaceX with SSPAs for the ground segment of its Starlink network, which provides high-speed internet via low-earth orbit satellites. But a strategic partnership signed between them in early 2024 immediately sent the stock up 50%.

The game-changing agreement included:

• An initial order of $19.7m (£15.8m) for SSPA modules.
• A commitment to ongoing orders for the next five years.
• SpaceX was issued warrants for up to 10% of Filtronic’s share capital.
• A collaboration to focus on additional frequency bands.

The equity stake gives SpaceX a vested interest in Filtronic’s financial success. As evidenced in August 2025, when a record $62.5m contract for Filtronic’s next-generation GaN E-band product sent the share price surging again.

SpaceX IPO

SpaceX is gearing up for a potentially record-breaking $1.75trn stock market debut this summer. It could net the rocket and satellite giant up to $75bn in cash.

Now, we already know SpaceX will use a decent chunk of this to scale up Starship, its gigantic reusable rocket and spacecraft launch system. It’s designed to deploy massive batches of next-generation Starlink satellites (potentially hundreds at once).

Presumably, if SpaceX uses IPO funds to massively increase the Starlink constellation, and also develop space-based AI data centres, that will require more ground-based infrastructure. And that’s surely fantastic news for Filtronic’s order pipeline. The firm has already moved into a larger headquarters and manufacturing facility to support the anticipated expansion.

Lumpiness

That said, growth’s unlikely to be linear. Revenue for this fiscal year (FY26), ending May, is expected to be broadly the same as FY25, at about £55m. Therefore, earnings can be lumpy, inviting share price volatility.

On top of this, the valuation’s now very high (albeit far cheaper than the mooted SpaceX valuation). Based on the £75m revenue forecast for the 2027/28 year (FY28), the forward price-to-sales ratio is around 8.5.

If sales growth fails to materialise, the stock could end up badly overvalued.

Worth a look?

Looking ahead though, it’s hard not to be bullish on Filtronic’s future growth trajectory, especially when adding in emerging opportunities across the European SpaceTech and defence sectors.

Its new high-powered V-band amplifiers open up further opportunities in medium earth orbit and geostationary for the first time.

Weighing things up, I think the Starlink and defence growth potential make the stock worth considering for the next five years.

The post The SpaceX IPO will spark a $75bn spending spree — this FTSE AIM stock could win big appeared first on The Twelfth Magpie.

The exciting communications manufacturer had just signed a deal with SpaceX to supply equipment for the firm’s rockets. The stock was surging. The growth story looked compelling. I took the plunge and opened a position. What has happened since? It looks like I made a pretty good decision…

Double up

In the eight months since that article, the Filtronic share price has doubled in value – up 120% at its peak, although it has retreated a touch since then. The market cap has soared to £651m, now larger than a couple of dozen FTSE 250 companies (it may join the index in the near future). A £10,000 stake is now worth £20,175.

All the while, I got a decisive answer to the opening question – yes, yes I should have bought that UK tech stock!

A share price doubling in less than a year is a pretty rare event. So what happened? In short, we can call it the ‘SpaceX effect’.

Filtronic works closely with SpaceX, receiving two massive orders in the last year alone. The American giant also holds something like 10% of the equity in the British firm – a sign that this is a partnership that is here for the long run.

What has been lifting up both companies is the hype around the nascent ‘space industry’ and the upcoming blockbuster IPO. When SpaceX has a public offering later this year, it is expected to be valued at $2trn or thereabouts.

While the 100% gain has been nice to watch rising in my portfolio, I will say that us longtime investors know that there will always be winners and losers. I was not looking to double up as quickly as possible and sell. I’m interested in investing in great companies that can be financially rewarding over decades. And with that in mind, I think Filtronic could still be a good buy today…

Is it a buy today?

Much of the potential with Filtronic is tied up in the success of the space industry at large. We have seen applications for taking things to orbit already such as Starlink. And BAE Systems has just released a new spacecraft for space defence too. If the use cases continue to grow then the valuable technology Filtronic provides could as well.

The risks are that this is a new industry and valuations are sky high. Filtronic now has a price-to-earnings ratio of 71 – making it one of the most expensive stocks on that metric across the whole FTSE 350. To take another example, SpaceX is aiming for a market cap of $2trn with a purported revenue of $16bn and earnings of $8bn. Pricey stuff.

My view? I’m not focusing on a time period as short as the past eight months. I think the company makes good products that are needed in a growing industry. I like its prospects over the long term and think it’s worth considering today.

The post £10,000 invested in Filtronic stock 8 months ago is now worth… appeared first on The Twelfth Magpie.

For those keeping count, that’s a barnstorming 2,290% increase since April 2023!

Yet one broker sees even more gains ahead and has just massively lifted its price target. Why has it turned so bullish?

Supersonic Filtronic

As a quick reminder, Filtronic is a specialist electronics company that designs and makes radio frequency (RF), microwave, and mmWave components. These are used across telecommunications, aerospace, and defence, and the space sector.

Filtronic shareholders can thank the latter for the stock’s surge, specifically Elon Musk’s SpaceX. The rocket and satellite giant partnered with the UK company in 2024 after taking a fancy to its E-band solid state power amplifiers and transceivers.

These allow Starlink satellites to talk to the ground at ultra-high speeds. In August, Filtronic bagged a £47.3m ($62.5m) contract with SpaceX, its largest ever deal.

For context, that was more than the firm generated in revenue for the whole of the previous year. CEO Nat Edington said the contract “validates the strength of our engineering capability“.

Bullish broker

Yesterday (28 April), Berenberg Bank reiterated its Buy recommendation on Filtronic and upped its share price target to 360p. That was well beyond its previous target of 213p, and is 37% above the current price.

The analyst team has turned more bullish after visiting the company’s new headquarters and manufacturing facility in County Durham. It called Filtronic “one of the best-positioned pure-play space names” in the UK. 

While only three City brokers have covered the stock in the past three months, all rated it a Buy. However, the average price target among them is just 0.5% higher, including Berenberg’s 360p.

SpaceX war chest

Of course, analysts’ price targets often change like the wind, so they can’t be relied upon as gospel. But it’s hard not to be bullish about Filtronic’s future growth prosects.

After all, strategic partner SpaceX is gearing up for a massive IPO this summer. It may be the biggest ever if Elon Musk gets his way, with a $1.75trn valuation being talked about.

The good news for Filtronic is that SpaceX will be flush with cash if it raises between $50bn and $75bn of new capital. And with expansion of its Starlink satellite constellation a key priority, this bodes well for Filtronic’s high-frequency RF solutions.

Our core markets of space and defence continue to be supported by sustained satellite deployment activity, increased defence expenditure and growing requirements for secure, high-frequency communications.
Filtronic

Two key risks

Now, as bullish as I am (I’ve highlighted this stock nearly every month since January 2025), there are two risks to bear in mind.

The first is that record contracts from SpaceX have led to significant customer concentration. If anything went awry with this partnership, the share price could quickly collapse.

The second concern relates to valuation. After surging 187% in the past year, the stock now traded at more than 10 times sales. The forward price-to-earnings ratio is approximately 75.

I think a premium is warranted here due to the Starlink and defence growth opportunities. However, with the valuation looking a bit stretched, investors may want to consider building a position gradually through dips. 

The post This former penny stock can jump another 37% to 360p, says this broker appeared first on The Twelfth Magpie.

Showing this figure isn’t just science fiction, we had two developments last week. First, there was NASA’s successful Artemis II rocket launch that sent humans towards the Moon for the first time in over 50 years. Second, industry juggernaut SpaceX has reportedly filed to go public at a potential valuation of $1.75trn.

Here are three stocks to consider buying for exposure to the booming space economy.

SpaceTech fund

Let’s start with Seraphim Space Investment Trust (LSE:SSIT). This £365m trust invests in earlier-stage growth companies involved with space technology (SpaceTech).

The stock’s had an amazing run, going from 51p to above 150p in just 12 months.

However, this hasn’t been driven by mere hype, but actual tangible progress made by its portfolio companies. In March, it announced a 20% jump in its net asset value (NAV), or an increase of £56.4m.  

For example, Finnish microsatellite firm ICEYE secured a massive €1.7bn space reconnaissance contract from the German government alongside its partner, defence giant Rheinmetall. ALL.SPACE, HawkEye 360, and D-Orbit also received meaningful valuation uplifts.

It’s worth noting that seven of the trust’s top 10 holdings expect to report EBITDA profitability in 2026. So these are far from starry-eyed start-ups in garages.

The biggest risk would be Europe turning off the funding tap. However, while this can’t be ruled out, I think President Trump threatening to leave NATO makes it even more likely that Europe spends hundreds of billions building out its own space and defence capabilities.

If so, then many of the key holdings here should benefit massively. As I write, the trust’s trading at a 5% premium to NAV, suggesting that its valuation is far from bonkers.

European blue chip

Next, we have Airbus (ENXT:AIR), whose share price is down roughly 22% since January.

While primarily a maker of passenger jets, Airbus also has a Defence and Space division. Last year, revenue here increased 11% year on year to €13.4bn, while order intake surged to a record €17.7bn.

Airbus built the European Service Module for NASA’s Artemis programme, providing power and life support for the Orion spacecraft heading to the Moon.  

Rather than a pureplay space stock, Airbus is a stable, profitable giant with a massive backlog of 8,754 commercial aircraft. Supply chain shortages could result in production delays, but the forward price-to-earnings multiple of 22 looks reasonable to me.

AIM-listed stock

Returning to SpaceX, let’s end with Filtronic (LSE:FTC). This is a small-ish UK company with a £435m market-cap that designs and manufactures advanced radio frequency (RF) solutions for the space, aerospace and defence, and telecoms markets.

A deal signed with SpaceX to support SpaceX’s Starlink satellite constellation has been transformative. Revenue ballooned from £16.3m in 2023 to £56.3m last year.

The flip side to this is that SpaceX now makes up the vast bulk of revenue, which adds concentration risk. However, it’s worth noting that Filtronic is having success diversifying revenue streams.

For example, last week it was selected by a major European defence firm to provide it with components, building on an $8m contract won with the US army the week before.

The post 3 top space stocks to consider buying for an ISA in April appeared first on The Twelfth Magpie.