Vuzix price target raised to $6 from $3 at Craig-Hallum

Craig-Hallum raised the firm’s price target on Vuzix (VUZI) to $6 from $3 and keeps a Buy rating on the shares. Vuzix announced Tuesday that it received a six-figure development order for customized Waveguides from a leading U.S. defense contractor, and Craig-Hallum believes that the company could announce other defense contractor customers for custom head-mounted display programs by the end of this year, the analyst tells investors in a research note. These programs could carry an average ASP to VUZI of $4,000 plus-or-minus, representing what could be a $40M-$400M opportunity for Vuzix over time, the firm adds. Craig-Hallum also believes Vuzix is well-positioned to see a ramp of smart glasses and augmented reality opportunities with its partner Quanta.