Update shared on 22 Nov 2025
Fair value Increased 17%Analysts have raised their price target for nLIGHT by nearly $6 to $41.50, citing improved confidence in the company's near- and medium-term growth prospects, as well as expectations for continued solid performance in upcoming quarters.
Analyst Commentary
Analyst discussions following recent meetings with company leadership have offered both encouragement and points of caution regarding nLIGHT’s performance and outlook.
Bullish Takeaways
- Bullish analysts highlight a stronger near- and medium-term outlook, supported by increased management confidence and improved market positioning.
- The company is believed to have a sufficient backlog and robust pipeline, which may enable it to achieve the upper end of Q3 guidance and support sequential growth into Q4.
- Adjustments to the price target have been attributed to expectations for continued solid execution, reflecting a positive sentiment toward nLIGHT's operational effectiveness.
- Steady growth prospects are further reinforced by recent meetings that left analysts incrementally more confident in management's strategy and actions.
Bearish Takeaways
- Some analysts remain mindful of execution risk, particularly related to the company’s ability to convert backlog and pipeline opportunities into realized revenue.
- Continued performance hinges on customer demand holding up, and any volatility in end markets could impact near-term results.
- While the growth outlook is positive, there is caution around the sustainability of sequential growth beyond current guidance.
What's in the News
- nLIGHT, Inc. has issued new earnings guidance for the fourth quarter of 2025. The company anticipates revenues between $72 million and $78 million, with Products revenue around $55 million and Advanced Development revenue approximately $20 million (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen from $35.58 to $41.50, reflecting increased market optimism.
- Discount Rate has decreased slightly from 8.44 percent to 8.40 percent, indicating a marginally lower perceived risk.
- Revenue Growth expectations have edged up from 15.19 percent to 15.32 percent, suggesting a modestly brighter outlook for topline expansion.
- Net Profit Margin forecast has fallen from 9.02 percent to 8.75 percent, pointing to slightly reduced profitability projections.
- Future P/E has increased from 80.98x to 96.93x, highlighting that higher valuation multiples are now being assigned to the company’s forward earnings.
Disclaimer
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