Analyst Dave Kang of B.Riley Financial reiterated a Buy rating on Luna Innovations (LUNA – Research Report), with a price target of $11.50.
Dave Kang has assigned a Buy rating to Luna Innovations based on a combination of factors. Foremost, despite a recent decline in Luna’s shares by approximately 30% since the 2Q print, the company has reaffirmed its 2023 revenue/EBITDA outlook. The projected revenue is between $125M-$130M and EBITDA is between $14M-$18M. Also, the 3Q revenue outlook is between $29M-$32M. This positive financial outlook, even amidst share decline, suggests company stability and potential for future growth.
Moreover, Luna’s management anticipates a quick recovery in the Commtest sector, which has been under pressure due to macroeconomic headwinds impacting the communication equipment industry. The slowdown in this sector is primarily from government/military customers rather than service providers. Additionally, driven by EV battery testing, Luna’s THz is fully booked for the remaining part of the year. The company has also expanded THz capacity by 4 times during the 2Q to accommodate increased activities. These strategic responses to market dynamics and planned expansions further support Kang’s Buy rating.
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Luna Innovations (LUNA) Company Description:
Luna Innovations, Inc. develops and manufactures fiber optic test and measurement, sensing and instrumentation products for the healthcare, telecommunications, energy and defense markets. It operates through two segments: Products and Licensing, and Technology Development. The Products and licensing segment conducts applied research in the fiber optic sensing area for both corporate and government customers. The Technology Development segment performs applied research for government funded projects and includes secure computing and communications group. The company was founded by Kent A. Murphy in July 1990 and is headquartered in Roanoke, VA.
Read More on LUNA:
- Luna Announces Third-Quarter 2023 Financial Release Date of November 14, 2023
- Luna Innovations sees Q3 revenue $29M -$32M, consensus $30.61M
- Luna Innovations backs FY23 revenue $125M- $130M , consensus $125.01M
- Luna Innovations names George Gomez-Quintero as CFO
- Luna Innovations wins contract for mine conveyor belt monitoring
