JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Friday, Raymond (NSE:RYMD) James analyst Brian Gesuale affirmed a strong buy rating on Nlight (NASDAQ:LASR), maintaining a $20.00 price target. According to InvestingPro data, this target represents significant upside potential from the current trading price of $11.34, with analyst targets ranging from $11 to $20. The stock has shown strong momentum recently, with a notable return over the last month. The endorsement follows Nlight’s second-quarter performance and guidance, which Gesuale believes strongly supports the investment firm’s original thesis. The company reported significant strength in its Aerospace and Defense (A&D) sectors and positive indicators for global demand of directed energy products, with projections surpassing expectations.
Nlight, which anticipates approximately 70% of its 2025 sales to stem from defense business, showcased a remarkable growth of over 30% in this segment. The defense revenue specifically saw a 50% increase, aligning with Raymond James’ predictions. The company’s overall revenue growth stands at 2.66%, with total revenue reaching $205.69 million in the last twelve months. Conversely, the industrial business witnessed a decline of only 17%, which was still better than anticipated.
Gesuale highlighted that the bullish stance on defense is reaching a pivotal moment, as clarity around Directed Energy programs is expected to increase toward the end of the year. Nlight is set to achieve significant milestones in the second half of 2025, with a broadening array of domestic and international opportunities. The company is also actively engaging with partners to potentially secure revenue from the Golden Dome project in the future.
The analyst pointed out the strategic shift towards defense not only promises growth and improved margins but could also enhance the company’s valuation multiples. With these factors in mind, Raymond James reiterated their strong buy rating and $20 price target on Nlight stock. For deeper insights into Nlight’s valuation and growth potential, InvestingPro subscribers can access comprehensive financial health scores, additional ProTips, and detailed research reports that provide actionable intelligence for smarter investment decisions.
In other recent news, nLIGHT Inc . reported its Q1 2025 financial results, revealing a slight beat on earnings per share (EPS) with an actual EPS of -$0.16 compared to the forecast of -$0.17. The company also exceeded revenue expectations, reporting $51.7 million against a projected $47.71 million. This performance was largely driven by strong growth in the aerospace and defense sector, which saw a 50.4% year-over-year increase, now accounting for 63% of total sales. Additionally, nLIGHT has set a Q2 2025 revenue guidance range of $53-$59 million, reflecting confidence in continued momentum in its key growth areas. Analyst firms have noted the company’s strategic pivot towards defense applications as a significant factor in its current performance. Despite these positive developments, nLIGHT continues to face challenges in the commercial market, which experienced a 16.8% decline in revenue year-over-year. The company has also highlighted potential risks related to tariffs and geopolitical tensions that could impact future operations.
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