Needham analyst Alex Henderson has maintained their bullish stance on LUNA stock, giving a Buy rating on December 22.
Alex Henderson has given his Buy rating due to a combination of strategic acquisitions and financial backing that positions Luna Innovations for substantial growth. Henderson notes that Luna’s acquisition of Silixa, a company that delivers distributed fiber optic sensing solutions, is a strategic move that enhances its product offerings and market reach. The purchase price of $21.5 million, with additional earnouts, is supported by a significant investment from White Hat Capital Partners, ensuring that Luna has the necessary funds to integrate and expand on this new asset.
Furthermore, the acquisition is expected to be immediately accretive to Luna’s financials, with Silixa projected to contribute around $30 million in revenue for 2023, signifying a 15% year-over-year growth. This figure represents a substantial portion, roughly one-fourth, of Luna’s anticipated revenue, based on Henderson’s estimate of $120 million for the year. The combination of these factors—accretive acquisitions, solid financial support, and significant revenue contributions—underpins Henderson’s optimistic Buy rating for Luna Innovations.
In another report released on December 22, Stifel Nicolaus also maintained a Buy rating on the stock with a $12.50 price target.
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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 Innovations announces $50M strategic investment from White Hat Capital
- Luna Innovations announces acquisition of Silixa for $21.5M upfront in cash
- Luna secures large, multi-unit follow-on order under agreement with Northrop
- Luna Innovations cuts FY23 revenue view to $120M-$125M from $125M-$130M
- Luna Innovations reports Q3 adjusted EPS 7c, consensus 7c
