Why CPS Technologies (CPSH) Is a Buy Now
1. Strong Fundamental Turnaround & Record Growth
CPS Technologies has delivered consecutive record revenue quarters, including ~$8.8 M in Q3 2025 and strong year-over-year growth across 2025, demonstrating sustained demand for its advanced materials and hermetic packaging solutions. Revenue is up sharply after recent capacity expansion, and the company has returned to positive operating and net income — a clear turnaround from prior losses.
2. Clear Competitive Edge in High-Value Materials
CPSH’s core products — metal-matrix composites (MMC) such as aluminum silicon carbide and advanced packaging — serve mission-critical applications in defense, aerospace, energy, transportation and power electronics. These materials command higher technical barriers to entry than commodity metal products, positioning CPSH in differentiated, high-margin niches.
3. Expansion of Revenue Streams & High-Visibility Contracts
The company has secured major contracts, including a $15.5 M multi-period supply deal with a multinational semiconductor OEM, providing near-term revenue stability and backlog visibility. CPSH also continues to commercialize new products like fiber-reinforced aluminum and radiation shielding materials, supported by government-funded R&D projects.
Bullish Target: $6.20 – $6.30 — based on combined analyst modeling and fundamental growth expectations.
Base Case Target: $6.00 — consensus 12-month price target.
Bear / Risk Case: $5.50–$5.80 — reflects slower execution or delayed contract ramp. (Implied from current range and moderate analyst ratings.)
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