LightPath can benefit from China export limits, says Alliance Global Partners

Alliance Global Partners analyst Brian Kintslinger notes that LightPath shares were up 38% earlier today following news that China will limit exports of certain metals, including germanium, which is used in infrared optic lenses, starting August 1. LightPath’s BD6, which has already completed testing by the Defense Logistics Agency, NASA, and European Space Agency, is one of the few alternatives to germanium that stands to benefit and the change in China regulations suggest faster adoption is likely, the analyst tells investors. Alliance reiterates a Buy rating and $3 price target on LightPath shares, but adds that its model “may prove very conservative if BD6 adoption ramps given the changing China regulations.”