Strategic Growth and Defense Sector Opportunities Propel nLIGHT’s Buy Rating

Analyst James Ricchiuti of Needham reiterated a Buy rating on nLIGHT (LASR – Research Report), boosting the price target to $18.00.

James Ricchiuti has given his Buy rating due to a combination of factors that highlight nLIGHT’s strategic positioning and growth potential in the defense sector. Recent reports from Israel have confirmed the successful use of laser systems in military applications, which underscores the increasing importance of directed energy weapons. nLIGHT is believed to be collaborating with key players in Israel, such as Rafael and Elbit Systems, on advanced defense systems like the Iron Beam, positioning the company to benefit from these technological advancements.
Moreover, the U.S. government’s proposed $7.2 billion Golden Dome missile defense program, which allocates significant funds for non-kinetic defense capabilities, further strengthens nLIGHT’s prospects. The company’s defense business, which constitutes a substantial portion of its revenue, has shown impressive growth, with a 49% year-over-year increase in Q1. This growth is supported by a robust backlog of defense-related programs, indicating strong future revenue potential. These factors collectively contribute to Ricchiuti’s positive outlook on nLIGHT’s stock.

Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LASR in relation to earlier this year.