Needham raises Nlight stock price target to $28 on strong defense growth

Published 08/08/2025, 11:06
Needham raises Nlight stock price target to $28 on strong defense growth

Investing.com - Needham has raised its price target on Nlight (NASDAQ:LASR) to $28.00 from $18.00 while maintaining a Buy rating following the company’s strong second-quarter performance. The stock, which has surged 89% over the past six months, is currently trading near its 52-week high of $21.60. InvestingPro data shows 8 analysts have recently revised their earnings expectations upward for the upcoming period.

The laser manufacturer reported a 22% increase in revenue, exceeding both the top end of its guidance and Street expectations of 9% growth. This performance was primarily driven by robust growth in the Aerospace and Defense (A&D) segment.

Nlight delivered surprisingly strong adjusted EBITDA profit against consensus expectations of $(1.5) million, benefiting from a combination of strong volume and improved margins. The company also saw modestly better performance from its Commercial business.

Management has raised its growth outlook for the Defense business, now projecting 40% or more growth in 2025, up from its previous expectation of 25%-plus. This improved outlook appears to be the primary focus for investors.

For the third quarter, Nlight has guided for 10%-19% year-over-year revenue growth, representing 15% at the midpoint compared to Street expectations for flat revenues.

In other recent news, nLIGHT Inc . reported its Q1 2025 earnings, revealing a slight beat on its earnings per share (EPS) forecast. The company posted an EPS of -$0.16, compared to the anticipated -$0.17, and achieved a revenue of $51.7 million, exceeding the expected $47.71 million. This performance highlights nLIGHT’s ability to surpass market expectations. Additionally, Raymond (NSE:RYMD) James analyst Brian Gesuale maintained a strong buy rating for nLIGHT, with a price target of $20. The endorsement was influenced by nLIGHT’s robust second-quarter performance, particularly in the Aerospace and Defense sectors. The company saw a 50% increase in defense revenue, aligning with Raymond James’ predictions. In other developments, nLIGHT appointed Mark Hartman to its Board of Directors, replacing Doug Carlisle. Hartman will also serve on the Audit Committee. These recent developments indicate significant progress and strategic adjustments within the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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