nLIGHT Inc. (LASR) stocks are headed for their best week in nearly a year after Craig-Hallum raised the company's price target to $100 from $80 following nLIGHT's announcement of a Joint Laser Weapon System (JLWS) contract with a maximum potential value of $627 million. The price target upgrade came after the high-power laser provider secured the defense contract with the U.S. Department of War, which will begin with a $44 million initial award. The deal strengthens nLIGHT's position in the growing directed-energy defense market, where demand for advanced defense technologies is increasing amid rising tensions in the Middle East.
Craig-Hallum Raises nLIGHT Price Target to $100 on JLWS Contract Strength
Craig-Hallum raised its price target on nLIGHT to $100 from $80 and maintained a 'Buy' rating following the company's announcement of the Joint Laser Weapon System (JLWS) contract. 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 focuses on the development of containerized high-energy laser weapons, marking an important achievement for nLIGHT's defense technology business.
Craig-Hallum said the contract represents strong confirmation of the company's capabilities and could create a major opportunity within the directed energy sector. The research firm expects additional awards could generate hundreds of millions of dollars in revenue over the coming years.
nLIGHT JLWS Contract Details and Revenue Timeline
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 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.
Retail Traders React to nLIGHT Contract Announcement
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.
FAQ
What defense contract did nLIGHT announce?
nLIGHT announced a Joint Laser Weapon System (JLWS) contract with the U.S. Department of War with a maximum potential value of $627 million. The project will begin with a $44 million initial contract, with the full program potentially growing to $627 million if additional development, integration, and production work is approved later.
What is Craig-Hallum's new price target for nLIGHT stocks?
Craig-Hallum raised its price target on nLIGHT to $100 from $80 and maintained a 'Buy' rating. The new price target implies a 34% upside potential to the stock's last close.
When does Craig-Hallum expect nLIGHT to see revenue from the JLWS contract?
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.
