We think CTS's diversification efforts into more profitable end markets has enabled the company to better endure slower trends in the vehicle market . As such, we look for 20% year over year profit growth in EPS to $0.60 in 4Q:25. Despite an active M&A profile, the company has a disciplined capital allocation strategy. At the end of 3Q:25, the company had a net cash position of $19.6 million ($0.66 per share). We look for free cash flow (FCF) of $82.9 million ($2.77 per share) in 2025, allowing net cash to widen to $33.1 million ($1.12 per share). We recognize an ongoing shift away from more cyclical and less profitable automotive revenue and raise our target multiple to 20x (from 18x) to reflect the improving and less cyclical profit profile. Applying our new 20x takes our price target to $52 (from $47), based on our unchanged 2027 EPS estimate of $2.60. We maintain CTS's moderate risk rating, reflecting the company's strong balance sheet and solid cash flow generation.