Analyst Scott Buck from H.C. Wainwright maintained a Buy rating on Lightpath Technologies (LPTH – Research Report) and keeping the price target at $5.00.
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Scott Buck has given his Buy rating due to a combination of factors that highlight the potential growth and strategic advancements of LightPath Technologies. The company’s recent acquisition of G5 Infrared has started to show promising results, with new contract awards that suggest a significant contribution to future revenues. These contracts, particularly in areas like shipboard long-range surveillance and border security, indicate a strong demand that could benefit from sustained government investment, providing a robust long-term growth trajectory.
Additionally, LightPath’s Germanium-free BlackDiamond infrared imaging solutions are gaining traction due to supply chain issues affecting competitors who rely on Germanium sourced from China. This positions LightPath favorably in the market. Despite a slight miss in revenue expectations for F3Q25, the company’s gross margin has improved significantly, and the overall business momentum is positive. Buck believes that with the ongoing developments and potential new production announcements, LightPath Technologies is poised for accelerating revenue growth and more consistent profitability, justifying the Buy rating with a $5 price target.
In another report released on May 16, Lake Street also maintained a Buy rating on the stock with a $4.00 price target.