LASR: Q4 Outlook Suggests Gradual Improvement With Balanced Long Term Prospects

Analysts have modestly raised their price target on nLIGHT, citing a slightly higher fair value estimate of 41.86 dollars from 41.50 dollars. This change is supported by marginal improvements in projected revenue growth and a lower discount rate, which together imply a somewhat richer long term earnings outlook.

What's in the News

• Issued fourth quarter 2025 revenue guidance in the range of 72 million dollars to 78 million dollars, signaling management expectations for continued top line growth (company guidance).
• The guidance midpoint of 75 million dollars assumes approximately 55 million dollars in Products revenue, underscoring the core business as the primary growth driver (company guidance).
• Advanced Development revenue is projected at approximately 20 million dollars for the quarter, highlighting ongoing demand for nLIGHT's specialized and defense related programs (company guidance).

Valuation Changes

• The Fair Value Estimate has risen slightly from 41.50 dollars to approximately 41.86 dollars, reflecting a modest upward recalibration of nLIGHT's intrinsic valuation.
• The Discount Rate has decreased marginally from about 8.44 percent to roughly 8.42 percent, indicating a slightly lower perceived risk profile or cost of capital in the updated model.
• Revenue Growth has increased slightly from approximately 15.32 percent to about 15.48 percent, incorporating a modestly stronger top line trajectory into forward projections.
• The Net Profit Margin is essentially unchanged, edging down fractionally from around 8.75 percent to about 8.75 percent, suggesting a stable long term profitability outlook.
• The Future P/E has risen marginally from roughly 97.0 times to about 97.4 times, implying a slightly higher multiple applied to expected earnings in the revised valuation.