Is nLIGHT stock a buy right now?

Roth Capital Markets analyst Tom Hayes initiated coverage of nLIGHT (nLIGHT Stock Quote, Chart, News, Analysts, Financials NASDAQ:LASR) with a “Buy” rating and a US$44.00 price target, citing the company’s positioning as a pure-play provider of directed-energy laser solutions at a time when global defence spending is increasingly focused on counter-drone and hypersonic threats.

“We see it benefiting from being a pure play directed energy laser provider,” Hayes said, adding that “several forces driving directed energy weapon adoption should accelerate over the next decade.”

Headquartered in Camas, Washington, nLIGHT designs and manufactures high-power semiconductor and fibre lasers used across aerospace and defence, industrial manufacturing and microfabrication applications. Hayes believes the company is well positioned to emerge as a technology leader as defence departments globally invest in next-generation laser-based protection systems.

Defence exposure has become increasingly central to the nLIGHT story. Over the past five years, defence-related revenue has averaged 42% of total sales, rising to 53% in 2024 and 64% in the second quarter of 2025. Hayes said the long-duration nature of defence programs provides a meaningful growth runway, noting that management has identified a potential defence pipeline of approximately US$2-billion.

nLIGHT is currently participating in Phase 2 of the U.S. High Energy Laser-Strategic, Intermediate, and Short-Range Defense (HELSI) program, which is focused on scaling laser power to the megawatt class over the next three years. The total value of the contract awarded to nLIGHT has increased to US$171-million after options were exercised, up from the original US$86-million award in May 2023.

Beyond weapons applications, Hayes highlighted growing opportunities in sensing and targeting, where nLIGHT’s pulsed laser technology functions as a LIDAR-like enhancement to traditional radar systems.

Hayes said nLIGHT’s fibre laser technology is well suited to metal additive manufacturing, enabling higher productivity and lower cost per part through multi-laser and dynamic beam-shaping solutions.
From a balance sheet perspective, Hayes described nLIGHT as well capitalized, ending the third quarter of 2025 with US$81-million in cash and investments and just US$20-million drawn on its credit facility.

Hayes set his US$44.00 price target using a 6.5-times EV-to-revenue multiple applied to his 2027 revenue estimate, acknowledging the valuation is above average but justified by the company’s expected growth profile and expanding defence exposure.

He expects nLIGHT to generate US$20.8-million in Adjusted EBITDA on US$255.3-million of revenue in fiscal 2025, improving to US$31.3-million of Adjusted EBITDA on US$284.1-million of revenue in fiscal 2026.

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