nLIGHT’s latest laser weapons contract from the U.S. Department of War has garnered both investors’ and analysts’ backing.
- Craig-Hallum raised nLIGHT’s price target to $100 after its $627 million JLWS defense contract win.
- The $44 million initial award could expand into a major revenue opportunity, with larger financial benefits expected in 2027 and 2028.
- The deal strengthens nLIGHT’s position in the growing directed-energy defense market.
nLIGHT Inc. (LASR) stock is headed for its best week in nearly a year after receiving a boost from Craig-Hallum following the high-power laser provider’s securing a major defense contract, prompting the research firm to boost its price target and maintain a positive outlook.
Craig-Hallum Sees 34% Upside For nLIGHT on JLWS Project Strength
Craig-Hallum raised its price target on nLIGHT to $100 from $80 and maintained a ‘Buy’ rating following the company’s announcement of a Joint Laser Weapon System (JLWS) contract with a maximum potential value of $627 million.
The new price target implies a 34% upside potential to the stock’s last close. The JLWS project will begin with a $44 million contract, but the full program could grow to as much as $627 million if additional development, integration, and production work is approved later.
The agreement with the U.S. Department of War (DoW)focuses on the development of containerized high-energy laser weapons, marking an important achievement for nLIGHT’s defense technology business.
nLIGHT expects its laser systems to help military forces stop drone and missile threats more effectively and at lower costs. The contract comes as tensions in the Middle East rise, increasing demand for advanced defense technologies.
Craig-Hallum said the contract represents strong confirmation of the company’s capabilities and could create a major opportunity within the directed energy sector and expects additional awards could generate hundreds of millions of dollars in revenue over the coming years.
Craig-Hallum expects the company may earn some revenue from the first contract this year, with bigger financial benefits likely coming in 2027 and 2028.
nLIGHT stock traded over 1% higher in Friday’s premarket.
LASR Retail Traders View
On Stocktwits, retail sentiment around the stock jumped to ‘extremely bullish’ from ‘neutral’ territory the previous day. The stock saw a 4,100% jump in message volume over the past week, with a 5.3% gain in watchers.
A user said the contract has strengthened nLIGHT’s role in the growing directed-energy defense market and added, “Why it matters: Multi-year government-backed opportunity; Expands from laser components toward complete defense systems; Rising demand for counter-drone and missile defense.”
Another user said, “Wild spreads here. Good news today. Should be a multi-day runner. Could see new ATH very soon.”
LASR stock has nearly doubled year-to-date.
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