One small-cap ASX stock is giving shareholders something to smile about on Monday.
Titomic Ltd (ASX: TTT) shares are up 10.87% to 12.8 cents after the company announced a new defence contract before the market opened.
That puts Titomic's market value at around $228 million.
It comes after a difficult stretch for shareholders, with the stock still down around 47% in 2026 and 50% over the past 12 months.
So, what was in this morning's release?
Image source: Getty Images
A US$5 million contract
Titomic revealed that its US subsidiary has been awarded a US$5 million contract by the US Air Force.
The company will supply, integrate and commission one of its TKF 1000 cold spray systems at Tinker Air Force Base in Oklahoma.
The system can be used for things such as component repair, restoring worn parts, corrosion protection and additive manufacturing.
Titomic said the contract places its technology inside one of the largest US Air Force maintenance and repair facilities in the country.
Delivery is scheduled for the third quarter of 2027, with revenue to be recognised as the company completes different stages of the contract.
More orders are starting to come through
It's not like this deal hasn't arrived completely out of the blue.
Titomic has been spending the past few years trying to turn trials and qualification work into commercial orders.
Just recently, it announced a number of US orders worth more than $750,000 across the aerospace, defence, space, energy and oil and gas industries.
The company has also expanded its Huntsville facility as it builds manufacturing capacity in the United States.
However, there's still plenty of work ahead.
Titomic is still a loss-making company, and earlier this month it raised $16.5 million through a share placement at 13 cents apiece.
Interestingly, even after today's rally, the shares are still trading just below that placement price.
How high could the shares go?
There is certainly a big gap between the current share price and some broker targets.
TipRanks shows two recent analyst ratings.
Bell Potter has a buy rating and 46 cent price target, while Ord Minnett has a hold rating and 18 cent target.
That gives an average target of 32 cents, or about 150% above where the stock stands today.
On the other hand, Morningstar is far more conservative, with a fair value estimate of 14.8 cents.
This just shows how divided analysts remain on the stock.
Nonetheless, if Titomic can keep winning big defence contracts, those higher targets could become a little more realistic.
