On Thursday, Ladenburg Thalmann signaled confidence in LightPath Technologies (NASDAQ:LPTH), as the firm adjusted its price target upward to $5.00 from the previous $3.00, while reiterating a Buy rating for the company's stock.
The revision follows a period of engagement with the company's management and investors in late December.
LightPath Technologies has experienced positive developments due to China's increased export controls on germanium. The company, which specializes in alternative materials, has effectively navigated through several challenges and has strategically reoriented its product mix. As a result, a larger portion of its revenue now stems from camera systems with higher average selling prices (ASPs) and greater profit margins.
The company's efforts to diversify and enhance its product offerings are expected to yield double-digit revenue growth in the fiscal year 2026. Additionally, the potential for even higher growth exists if LightPath Technologies secures any of the defense contracts it is currently pursuing.
The analyst from Ladenburg Thalmann emphasized the company's successful transformation and the promising outlook for its financial performance.
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