Should You Buy Frequency Electronics Inc (FEIM) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
57.420
1 Day change
5.11%
52 Week Range
61.470
Analysis Updated At
2026/01/28
FEIM is not a good buy right now for a beginner long-term investor who wants to enter immediately. The stock is trading well above recent Wall Street price targets ($42–$46) while momentum is slightly bearish/neutral (negative MACD), and the latest quarter shows weakening profitability (EPS and margins down YoY). If you already own it, holding makes more sense than adding here; for a new long-term entry, the current price is unattractive versus the available analyst target range and earnings trend.
Technical Analysis
Price/Trend: Near the pivot (55.474) after a down regular session (-2.46%) with a rebound post-market (+2.03%), suggesting short-term chop rather than a clean uptrend.
Momentum: MACD histogram is negative (-1.133) and contracting (bearish pressure easing but still below zero). RSI(6) ~48.4 is neutral.
Moving averages: Converging MAs indicate consolidation/indecision.
Key levels: Support S1 ~52.254 (then S2 ~50.265). Resistance R1 ~58.694 (then R2 ~60.683). For an impatient buyer, upside is capped by nearby resistance while downside risk to the low-50s support zone remains.
Pattern-based odds: Similar-pattern projection shows only modest expected drift over the next month, not a strong near-term edge.
Options Data
Positive Catalysts
- Contract/news catalyst: Follow-on contracts ~ $6M with a major aerospace company; additional >$2M expected within ~3 months (supports backlog/revenue visibility).
- Analyst (bull case): Craig-Hallum reiterates Buy and cites strong top-line/backlog performance, calling the post-earnings weakness a buying opportunity (as of 2025-12-12).
- Business mix improvement noted by Freedom Capital: strengthening in non-space defense segment and backlog growth (even though they downgraded).
Neutral/Negative Catalysts
- Profitability deterioration in latest reported quarter: net income, EPS, and gross margin all down YoY.
- Valuation/expectations risk: Stock price (55.74) is above the two most recent published price targets ($42 and $46), implying limited upside in the near term based on those analyst frameworks.
- Technical tone: MACD remains below zero and moving averages are converging (no clear bullish trend confirmation).
- Positioning signals: Hedge funds and insiders are neutral (no strong accumulation signal).
Financial Performance
Latest quarter: 2026/Q2.
- Revenue: $17.13M, +8.26% YoY (top-line growth is positive).
- Net Income: $1.80M, -32.14% YoY.
- EPS: $0.18, -35.71% YoY.
- Gross Margin: 38.16%, -20.76% YoY.
Takeaway: Sales are growing, but margins and earnings are contracting meaningfully, which weakens the near-term fundamental support for buying at an elevated price versus targets.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Recent changes (trend): Mixed-to-cooling. One firm (Craig-Hallum, 2025-12-12) kept a Buy and raised PT to $46 from $43. Another (Freedom Capital, 2025-12-16) downgraded to Hold from Buy and raised PT to $42 from $33 after Q2 came in slightly below expectations and below last year’s profitability.
Wall Street pros: improving backlog and recovery signs, strength in non-space defense programs, and contract wins.
Wall Street cons: recent EPS/margin pressure and Q2 profitability below last year; plus the stock price is currently above recent PTs, reducing perceived upside.
Influential/political trading: No recent congress trading data available. Hedge funds: Neutral. Insiders: Neutral.
Wall Street analysts forecast FEIM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FEIM is 0 USD with a low forecast of 0 USD and a high forecast of 0 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Analyst Rating
0
Wall Street analysts forecast FEIM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FEIM is 0 USD with a low forecast of 0 USD and a high forecast of 0 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Buy
Hold
Sell
0
Current: 54.630
Low
0
Averages
0
High
0
0
Current: 54.630
Low
0
Averages
0
High
0
Freedom Capital
Buy
to
Hold
downgrade
$33 -> $42
AI Analysis
2025-12-16
Reason
Freedom Capital
Price Target
$33 -> $42
AI Analysis
2025-12-16
downgrade
Buy
to
Hold
Reason
Freedom Capital downgraded Frequency Electronics to Hold from Buy with a price target of $42, up from $33. Frequency Electronics reported Q2 results slightly below expectations and last year's profitability, but showed signs of business recovery and strengthening in the non-space defense segment, the analyst tells investors in a research note. Growth in the order backlog and a revenue shift toward land-based defense programs help offset temporary satellite business weakness, laying a foundation for further growth, the firm argues.
Craig-Hallum
Daniel Hibshman
Buy
maintain
$43 -> $46
2025-12-12
Reason
Craig-Hallum
Daniel Hibshman
Price Target
$43 -> $46
2025-12-12
maintain
Buy
Reason
Craig-Hallum analyst Daniel Hibshman raised the firm's price target on Frequency Electronics to $46 from $43 and keeps a Buy rating on the shares. On a headline revenue beat and EPS miss, shares look to be trading slightly lower in the after-market. The firm sees that as a gift and would strongly encourage investors to take a look at what's going on under the covers. The quarter was a strong top line performance, and more importantly a strong backlog performance, but did miss on EPS, Craig-Hallum notes.
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