In a report released today, Scott Buck from H.C. Wainwright maintained a Buy rating on Lightpath Technologies (LPTH – Research Report), with a price target of $3.00.
Scott Buck has given his Buy rating due to a combination of factors including Lightpath Technologies’ improved market positioning and promising long-term revenue opportunities. Despite reporting slightly lower-than-expected revenues for F3Q24, the company has made significant strides, such as achieving a milestone in their initial order with Lockheed Martin and obtaining a European Defense license, which expands their total addressable market. Furthermore, Lightpath has introduced a new product, the BlackDiamond-NRL infrared glass, which is already incorporated in a Department of Defense program. These developments suggest potential for significant future revenue streams, even though the precise timing for these gains remains uncertain.
Buck’s optimism about the company’s future is reflected in the recommendation to buy shares ahead of anticipated revenue growth and profitability starting in FY25. Although recent operating results show a decrease in gross margin and an EBITDA loss, Buck believes the company’s current cash reserves are sufficient for its operational needs. Adjustments to the financial model post-F3Q24 results have led to a slight reduction in revenue estimates for FY24, but sequential quarterly revenue improvement is expected. The maintenance of a $3 price target underscores Buck’s confidence in the company’s valuation and prospects for recovery and growth in the coming periods.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Lightpath Technologies (LPTH) Company Description:
LightPath Technologies, Inc. designs, develops, manufactures, and distributes optical and infrared components. Its products include molded glass and assemblies; infrared molded lenses, diamond turned, conventional ground and polished ground lenses and assemblies; and Gradium lenses. It supports a range of customers in the field of industrial, laser, defense, medical, telecommunications, and instrumentation. The company was founded on June 15, 1992 and is headquartered in Orlando, FL.
