Cantor Fitzgerald cuts Nlight stock target to $14, keeps Overweight

Published 28/02/2025, 14:56
Cantor Fitzgerald cuts Nlight stock target to $14, keeps Overweight

On Friday, Cantor Fitzgerald analyst Troy Jensen adjusted the price target for Nlight (NASDAQ:LASR), a laser technology company, to $14.00 from the previous $15.00, while maintaining an Overweight rating on the shares. This decision follows the company’s fourth-quarter earnings, which were reported on January 14 and met with expectations. The stock, currently trading near its 52-week low of $9.04, has declined about 29% over the past year. According to InvestingPro, eight analysts have recently revised their earnings expectations downward for the upcoming period.

Nlight, which specializes in high-performance laser solutions, has faced several challenges recently. The company saw continued weakness in its industrial markets and encountered execution issues within its microfabrication business. Additionally, the timing of defense product deliveries affected the quarter’s results. Despite these challenges, the Aerospace and Defense (A&D) segment of Nlight’s business experienced a 20% year-over-year growth in 2024, bringing in a record $110 million and accounting for approximately 60% of total sales.

Looking ahead, Nlight’s management is optimistic about the A&D sector, expecting it to be the primary growth driver. They forecast at least a 25% growth in the A&D business for 2025. However, management also anticipates that the headwinds in commercial markets will likely continue throughout the year.

Nlight concluded the quarter with a robust financial position, holding $101 million in cash and marketable securities, and carrying no debt. The revised 12-month price target of $14.00 is based on a lowered sales estimate for 2026, although the valuation multiple remains unchanged at 2.5 times EV/Sales.

In other recent news, nLIGHT Inc . reported disappointing Q4 2024 financial results, missing analyst forecasts on both earnings per share (EPS) and revenue. The company posted an EPS of -$0.30, significantly below the expected -$0.06, while revenue reached $47.38 million, falling short of the projected $59.97 million. The report highlighted a 9% year-over-year decrease in revenue and a sharp decline in gross margin to 2% from 19% in the previous year. In contrast, the Aerospace and Defense segment showed growth, increasing by 20%, whereas commercial markets saw a 25% decline. Looking forward, nLIGHT anticipates revenue for Q1 2025 to be between $45 million and $51 million, with expected growth in the Aerospace and Defense markets by 25% in 2025. The company’s backlog stands at $399 million, with $167 million funded, supporting future growth projections. Analyst firms like Needham Company and Craig Hallum Capital Group have noted the company’s challenges but also its potential in defense markets.

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