nLIGHT: Capitalizing on the Shift to High-Energy Laser Defense Systems With >20% Upside Potential

nLIGHT (LASR) has received a new Buy rating, initiated by William Blair analyst, Louie DiPalma.

Louie DiPalma has given his Buy rating due to a combination of factors related to nLIGHT’s leading position in a rapidly evolving defense market. He highlights that global militaries are shifting toward high-energy laser systems to counter inexpensive drones and missiles more economically, and that nLIGHT’s technology directly addresses this growing demand with superior cost-efficiency compared with traditional interceptors.

He also points to nLIGHT’s unique coherent beam combination platform and its progress toward delivering a one-megawatt-class laser, which would materially exceed current fielded power levels and underpins its role in flagship programs like Iron Beam and DragonFire. Combined with management’s deliberate pivot toward higher-margin defense and industrial applications, and his view of more than 20% potential share price upside supported by robust defense-tech valuations, these factors justify his Buy recommendation despite development and competitive risks.

DiPalma covers the Technology sector, focusing on stocks such as ViaSat, Palantir Technologies, and Caci International. According to TipRanks, DiPalma has an average return of 4.1% and a 54.66% success rate on recommended stocks.

In another report released on March 17, TipRanks – Google also reiterated a Buy rating on the stock with a $77.00 price target.