Update shared on 07 Nov 2025
Fair value Increased 27%The analyst price target for nLIGHT has increased from $28.08 to $35.58, as analysts cite improved backlog, a strengthened pipeline, and growing optimism in the company’s near- and medium-term outlook.
Analyst Commentary
Analyst assessments reflect both confidence in nLIGHT's growth strategy and awareness of potential risks, influencing the recent upward revision in the price target.
Bullish Takeaways
- Bullish analysts cite a strengthened backlog and robust sales pipeline as key drivers that could enable nLIGHT to meet or exceed guidance in the coming quarters.
- Recent executive meetings reinforced confidence in the company's execution and leadership, which contributes to an optimistic view of its market positioning.
- Expectations for sequential revenue growth in Q4 highlight improving demand trends and operational momentum.
- Management's visibility into near- and medium-term performance suggests a supportive environment for ongoing valuation expansion.
Bearish Takeaways
- Some analysts remain cautious about the company's ability to sustain growth beyond the current backlog and pipeline. They highlight execution risk if new orders slow.
- Visibility beyond the current year remains limited and this could weigh on forecasts if industry demand fluctuates or macro headwinds intensify.
- Margin expansion is not certain, as operational costs or supply chain disruptions could offset anticipated gains.
What's in the News
- nLIGHT has issued earnings guidance for the fourth quarter of 2025, projecting revenues between $72 million and $78 million (Key Developments).
- The company expects approximately $55 million in Products revenue and $20 million from Advanced Development for the same period (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has increased from $28.08 to $35.58, reflecting a notable upward revision in perceived fair value.
- Discount Rate has risen slightly from 8.12% to 8.44%, which signals a modest increase in the risk premium applied by analysts.
- Revenue Growth expectations have improved with projections moving from 12.70% to 15.19%.
- Net Profit Margin has remained largely steady, shifting minimally from 9.04% to 9.02%.
- Future P/E ratio has increased from 68.27x to 80.98x, which indicates higher anticipated valuation multiples relative to forecasted earnings.
Disclaimer
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