Up to 39% upside: analysts предложили four investment ideas in small caps

In a biweekly review, Freedom Broker analysts presented a list of four small caps that may be of interest to investors — from a fertilizer manufacturer and an aerospace supplier to an office REIT and a biotech company. More details are available in Freedom experts’ stock-market review No. 351.

Sarepta Therapeutics: recovery potential — up to 39%

Sarepta Therapeutics (SRPT) develops treatments for rare neuromuscular diseases. Freedom Broker analysts believe the company’s fundamentals remain fairly resilient, supported by commercialized products, cash flow, and prospects for new developments based on siRNA technology. Freedom Broker’s target price for SRPT is $25 versus the current $17,96, implying upside of about 39%. 

Revenue fell by a third, but the company remains profitable

Sarepta reported second-quarter results on August 5, 2026. Net product revenue totaled $328,7 million, including $230,6 million from PMO products and $98,1 million from ELEVIDYS gene therapy.

Total quarterly revenue came in at $401,3 million, down 34% year over year from $611,1 million. The main drivers were lower ELEVIDYS sales following a change in the drug’s indication, as well as the absence in the current quarter of a one-time $63,5 million payment from Roche received a year earlier.

Despite the revenue decline, Sarepta maintained operating profit: GAAP operating income was $13,3 million, and adjusted operating income was $86,5 million. A year earlier, these figures were $115,6 million and $162,8 million, respectively. Net loss for the quarter was $4,9 million versus net income of $196,9 million a year earlier. As of end-June, the company’s cash, cash equivalents, restricted cash, and investments totaled about $945 million. The company narrowed its 2026 revenue guidance to $1,2–1,3 billion from the previously stated range of $1,2–1,4 billion. 

TAT Technologies: aerospace demand implies 32% upside

TAT Technologies (TATT) supplies products and services for commercial and military aviation, as well as ground defense. The company provides maintenance and repair of aviation components, including auxiliary power units (APUs), heat exchangers, and landing gear, and also manufactures related parts. Freedom Broker values the stock at $54 versus the current $40,86. The upside is about 32%.

Second quarter showed a recovery in deliveries

TAT Technologies reported second-quarter results in early August. Quarterly revenue was $52,9 million, up 22,8% year over year. Gross profit increased 23% to $13,3 million, and operating income rose 26,8% to $5,6 million.

Adjusted EBITDA reached $7,4 million versus $6,1 million a year earlier, while the EBITDA margin held at 14%. Net income was $8,1 million versus $3,4 million a year earlier. However, the result includes a one-time gain of $4,3 million from the sale of a minority stake. Adjusted net income reached $4,66 million, up 35,2% year over year.

Key asset — record order book

Freedom Broker believes the most important factor in TAT’s investment case is not so much any single quarterly result as the high visibility of future revenue. The company’s backlog and long-term agreements as of end-June reached $615 million versus $580 million the prior quarter. A significant portion of contracts will be executed over several years, so analysts do not expect the entire order volume to be reflected quickly in financial results.

An additional catalyst was expanded cooperation with Honeywell Aerospace. TAT received the status of the only global authorized distributor of spare parts for APU 331-200/331-250 aircraft auxiliary power unit platforms. Analysts believe the immediate financial impact of the agreement may still be moderate, but it strengthens the company’s position in the APU servicing market. At the same time, Freedom Broker notes the risk of a slowdown in growth after a strong second quarter: part of the result reflects deferred shipments that were completed after component disruptions were resolved.

Intrepid Potash: fertilizers and a strong balance sheet provide nearly 24%

Intrepid Potash (IPI) produces potash and other chemical fertilizers for the U.S. market. The company’s investment case is supported by limited domestic supply, steady fertilizer demand, growing production, and relatively low costs. Freedom Broker’s target price is $45 versus the current price of $36,33, implying about 24% upside. 

Operating profit nearly doubled

Intrepid Potash published second-quarter results on August 4. Sales from continuing operations totaled $66,7 million versus $67,5 million a year earlier. Revenue was therefore essentially unchanged, but the quality of the financial result improved: gross profit increased from $12,4 million to $16,6 million, or about 35%.

Net income from continuing operations rose from $1,4 million to $2,4 million, and adjusted net income increased from $4,1 million to $7,4 million. Adjusted EBITDA grew from $13,8 million to $17,5 million. Total net income was $15,6 million versus $3,3 million a year earlier. However, almost all of the increase is attributable to a one-time gain from the sale of Intrepid South. The final sale value was $68,9 million, and in the second quarter Intrepid received $62 million in cash proceeds from the buyer. 

The company is increasing production

Management raised its 2026 production outlook: for potash fertilizers — to 290–300 thousand tons, and for Trio — to 295–305 thousand tons. At the same time, the company lowered its capex outlook to about $40 million and expanded its share repurchase program to $50 million.

Freedom Broker believes the combination of improving operating performance, a strong balance sheet, and minimal debt load gives the company the ability to invest in production expansion without a material increase in leverage. The key risk is the cyclicality of potash fertilizer prices and a potential recovery in global supply. 

Piedmont Realty Trust: 17% upside, but analysts recommend holding

Piedmont Realty Trust (PDM) is a U.S. REIT that owns and manages Class A office buildings primarily in Sun Belt cities. The company has about 16 million sq. ft. of office real estate.

Freedom Broker’s target price is $11 versus the current price of $9,37, implying about 17% upside. However, the recommendation is “Hold”: after a significant rally, analysts view further rerating as less attractive than for other stocks in the selection.

The company raises its guidance for the second time

Piedmont published second-quarter results on July 28, 2026, for the period ended June 30. Core FFO (core funds from operations) per share was $0,38, up 5,6% year over year, beating Freedom Broker’s expectation of $0,37. Net loss narrowed to $11,1 million, or $0,09 per share, versus $16,8 million, or $0,14 per share, a year earlier.

Against the backdrop of strong operating results, Piedmont for the second quarter in a row raised its guidance. The company now expects Core FFO in the range of $1,50–1,55 per share versus the prior outlook of $1,47–1,53. Same-store NOI growth guidance was also raised from 4–7% to 5–8%.

Leasing is becoming the key driver

In the second quarter, Piedmont signed and renewed leases for 459 thousand sq. ft., including 262 thousand sq. ft. of new space. Cash rental rates on new deals rose 14,1%, and on a GAAP basis — 32,4%.

As of end-June, about 0,9 million sq. ft. had already been leased but had not yet begun to fully generate income. Analysts estimate that once these contracts commence, they could provide about $39 million in additional annual rental revenue. Another roughly 1 million sq. ft. is in a rent-free period.

At the same time, further upside potential is limited: since the March lows, the shares have already gained more than 50%. Therefore, despite strong operating momentum, Freedom Broker maintains its “Hold” recommendation.

Not an individual investment recommendation.