Stifel resumes Kopin stock coverage with Buy rating on DoD contracts

Investing.com - Stifel has resumed coverage of Kopin Corporation (NASDAQ:KOPN) with a Buy rating and a $5.50 price target, citing the company’s position as a preferred microdisplay technology supplier to the Department of Defense. The stock, currently trading at $3.65, has shown remarkable momentum with a 168% gain year-to-date, according to InvestingPro data.

In a research note, Stifel highlighted the DoD’s increased commitment to reshoring critical electronic components for national security, which has created new budget resources supporting domestic suppliers like Kopin.

The firm pointed to recent Army contract awards as confirmation of Kopin’s status as the government’s preferred microdisplay technology leader and supplier in the defense sector.

Stifel projects Kopin’s participation in the Army’s new AR/VR headset program will drive a near tripling of revenue within five years, reaching approximately $150 million in the midterm.

The $5.50 price target represents a multiple of 6 times Stifel’s midterm revenue estimate, reflecting confidence in Kopin’s growth trajectory driven by defense contracts.

In other recent news, Kopin Corporation has secured several significant contracts and investments. The company announced a $3 million order for its MicroLED displays from a tier one aerospace company, marking its first production contract for this technology in combat aircraft. These displays are slated for delivery in the second half of 2026 and will be used to upgrade legacy Heads-Up Displays in fielded aircraft. Additionally, Kopin has been awarded a $15.4 million contract from the U.S. Department of Defense to develop ultra-bright, full-color MicroLED displays for military augmented reality applications. This project aims to enhance ground soldier systems under various lighting conditions.

In terms of financial developments, Kopin has secured approximately $41 million in private investment financing from strategic partners, including Theon International, Ondas Holdings, and Unusual Machines. This investment involves the issuance of 19,545,950 shares of common stock at $2.10 per share. Furthermore, Canaccord Genuity has raised its price target for Kopin to $3.00 from $2.50, maintaining a Buy rating. The research firm highlighted improved growth and margin prospects, strengthened by the recent investment from Theon International.

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