Astronics: Conservative 2026 Guidance, Operating Leverage, and Contract Upside Support Buy Rating and $90 Target

In a report released yesterday, Gautam Khanna from TD Cowen maintained a Buy rating on Astronics, with a price target of $90.00.

Gautam Khanna has given his Buy rating due to a combination of factors related to Astronics’ 2026 outlook and operating leverage. He believes current guidance for 2026 revenue and margins is conservative, as it assumes delayed Boeing 737 Max production ramp versus likely timing, and a sizable tariff headwind that could ease following the recent Supreme Court decision.

Further upside could come from additional pricing actions that are not yet fully embedded in forecasts, as well as incremental orders such as the MV-75 engineering true-up and potential NATO radio test-set contracts. Khanna also highlights the company’s strong recent EBITDA performance and mix benefits, with Q1 expected to be the low point for sales before a steady improvement through the rest of the year, supporting his higher $90 price target and Buy recommendation.

Based on the recent corporate insider activity of 40 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ATRO in relation to earlier this year.