Northland Raises Innovative Aerosystems, Inc. (ISSC) Price Target to $24, Maintains Outperform on Retrofits Momentum

We recently compiled a list of the 9 High Growth Small Cap Stocks That Are Profitable. The third stock on our list is Innovative Aerosystems, Inc.

TheFly reported on January 14 that Northland raised its price target on ISSC to $24 from $17.50 while maintaining an Outperform rating. The firm noted that the company’s focus on retrofitting projects is picking up momentum. It expects revenue to grow 7.5% in fiscal 2027, up from 4.1% in 2026, and predicts that EBTIDA margins will improve to 29% from 26.5%.

Separately, Innovative Aerosystems, Inc. (NASDAQ:ISSC) posted strong Q4 and FY2025 results on December 18, 2025, with Q4 revenue up 45% year over year to $22 million. Gross margins rose to 63.2%, and adjusted EBITDA jumped 71% to $9.6 million. Management reaffirmed its “IA Next” growth plan, targeting $250 million in revenue and 25–30% EBITDA margins. A $77 million backlog and the AI-enabled Liberty Flight Deck underpin a positive outlook.

Moreover, the company announced earlier today that it will release it’s first quarter 2026 results on February 12.

Innovative Aerosystems, Inc. (NASDAQ:ISSC) is a U.S. aerospace company that engineers and manufactures advanced avionics and flight systems for commercial, business, and military aircraft. It offers cockpit displays, autothrottles, navigation and air data systems, and other integrated solutions designed to modernize and enhance aircraft performance and safety.

While we acknowledge the potential of ISSC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.