Lake Street says LightPath’s ‘heavy lifting complete,’ starts with a Buy

As previously reported, Lake Street initiated coverage of LightPath with a Buy rating and $3 price target. Driven by a growing and diverse set of use cases, the infrared imaging market is set to reach $9B by 2026, which coincides with germanium, the material often used for infrared imaging, being identified as a strategic vulnerability in the U.S. supply chain, the analyst tells investor. LightPath has been building a pipeline of “potential needle-moving opportunities,” including a significant program with Lockheed (LMT) and with automakers, which has positioned the company to be approaching profitability again, the analyst tells investors. The firm does not think investors “fully appreciate that the heavy lifting is complete” and believes the stock can mover higher as investors start to see the return to growth and better profitability line of sight.