Innovative Solutions And Support: Strengthening Retrofit Momentum, Operating Leverage, and Growth Outlook Support Raised $24 Target and Buy Rating

Innovative Solutions And Support, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Bobby Brooks from Northland Securities maintained a Buy rating on the stock and has a $24.00 price target.

Bobby Brooks has given his Buy rating due to a combination of factors tied to Innovative Solutions And Support’s improving fundamentals and strategic positioning. He anticipates a meaningful acceleration in revenue growth by FY27, supported by the normalization of F-16 component demand and incremental benefits from cross-selling, while operating expenses are expected to remain relatively stable, enhancing operating leverage. Brooks also projects a notable expansion in EBITDA margins to the high‑20s percentage range, reflecting both healthy gross margins and the scalability of the current cost structure. In his view, these factors collectively support an increase in projected EBITDA above consensus and justify a higher valuation multiple.

Brooks’s conviction is further reinforced by ISSC’s growing momentum in the retrofit market, where its customized, modular Liberty Flight Deck solution is increasingly preferred over higher-cost, less flexible offerings from larger competitors. He argues that the company’s focus on tailored retrofit packages is gaining traction with operators that value safety upgrades and budget efficiency, creating a defensible niche. Additionally, ISSC’s recent tripling of its Pennsylvania manufacturing footprint positions it to capture future demand and aligns with domestic sourcing priorities, while leaving room for growth via potential acquisitions that are not yet reflected in his model. Taken together, these operational strengths and growth opportunities underpin his decision to raise the price target to $24 and reiterate a Buy rating on the shares.

According to TipRanks, Brooks is a 5-star analyst with an average return of 47.0% and a 75.57% success rate. Brooks covers the Industrials sector, focusing on stocks such as Graham, Innovative Solutions And Support, and Ceco Environmental.