JPMorgan initiated coverage on Graham Corporation with an Overweight rating and a $120.00 price target. The bank cited the company’s successful shift in focus, which is expected to lift defense revenue to about 60% of total revenue in fiscal year 2026.
Graham is a sole-source supplier for U.S. Navy content and has an established vacuum franchise. JPMorgan expects double-digit topline growth through fiscal year 2028. It also projects adjusted EBITDA growth in the mid-20s over that period.
A record backlog of $557 million provides visibility into future sales, according to JPMorgan.