nLIGHT’s Strategic Defense Growth Outweighs Commercial Challenges: A Buy Recommendation

Analyst James Ricchiuti from Needham maintained a Buy rating on nLIGHT (LASR – Research Report) and keeping the price target at $14.00.

James Ricchiuti has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for nLIGHT. Despite a cautious outlook for the first quarter, Ricchiuti is optimistic about the company’s defense segment, which is projected to grow significantly in the coming years. The defense business is expected to see a 25% growth in 2025, supported by a substantial backlog increase of 55% in 2024.
However, the commercial segment presents a contrasting picture, with anticipated revenue declines in 2024 and 2025. Despite these challenges, Ricchiuti believes the overall risk-reward profile of nLIGHT is appealing. The anticipated growth in the defense sector, coupled with the company’s strategic positioning, underpins the Buy rating, suggesting potential for long-term gains despite short-term pressures.

Ricchiuti covers the Technology sector, focusing on stocks such as TTM Technologies, 3D Systems, and Benchmark Electronics. According to TipRanks, Ricchiuti has an average return of 7.0% and a 48.58% success rate on recommended stocks.