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Investing.com - Raymond (NSE:RYMD) James has raised its price target on Nlight (NASDAQ:LASR) to $28.00 from $20.00 while maintaining a Strong Buy rating following the company’s better-than-expected second-quarter 2025 results. The stock, currently trading at $20.47, has shown remarkable momentum with an 89% gain over the past six months. According to InvestingPro, 8 analysts have recently revised their earnings estimates upward for the upcoming period.
The firm noted that Nlight reported strong guidance that aligned with its core thesis, showing particular strength in the aerospace and defense (A&D) sector and positive indicators for global demand in directed energy products.
Raymond James highlighted that Nlight is proving to be primarily a defense company, with approximately 70% of its 2025 sales projected to come from A&D customers, now expected to grow over 40% compared to a previous guidance of more than 25%.
The investment firm identified strong secular tailwinds for Nlight, suggesting the company is reaching a tipping point with global directed energy momentum and well-funded initiatives such as Golden Dome.
Raymond James projects that Nlight could potentially double its defense revenue and triple its AEBITDA to over $30 million in the next three years, citing the company’s leading position and increasing global adoption of directed energy technology.
In other recent news, nLIGHT Inc . reported a strong second-quarter performance with a 22% increase in revenue, surpassing both its guidance and market expectations. This growth was driven by significant advances in its Aerospace and Defense segment. The company also reported its Q1 2025 earnings, which slightly exceeded EPS forecasts, with actual earnings per share at -$0.16 compared to the predicted -$0.17. Revenue for the quarter reached $51.7 million, outpacing the anticipated $47.71 million. Analyst firm Needham responded to these results by raising its price target for nLIGHT to $28, maintaining a Buy rating. Meanwhile, Raymond James reiterated a strong buy rating, keeping its target at $20, citing robust performance in the defense sector and positive global demand indicators. Additionally, nLIGHT announced the appointment of Mark Hartman to its Board of Directors, where he will also serve on the Audit Committee. Hartman replaces Doug Carlisle, who resigned after a long tenure as a director. These developments reflect nLIGHT’s strategic positioning and ongoing growth in key market areas.
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