LightPath Technologies (LPTH) Stock Forecast & Price Target

LightPath Technologies Inc is projected to achieve revenue growth in FY25, increasing from $34.5 million to $38.0 million, reflecting a positive momentum fueled by new program awards. The company is also expected to benefit from the acquisition of G5 Infrared, which is anticipated to enhance gross margins towards mid 30.0% levels, thereby supporting more consistent profitability. Furthermore, the long-term outlook suggests that with a strong project pipeline, annual revenue could approach $100 million, indicating significant potential for future growth.

LightPath Technologies Inc. has reported a notable decline in gross margins, falling to 26.0%, down 360 basis points from the previous year and significantly lower than the 33.9% achieved sequentially. The company is experiencing weaker revenue attributed to new export restrictions on germanium from China, which are expected to present ongoing challenges. Furthermore, the stock has underperformed, declining 34.8% since the announcement of the G5 Infrared acquisition, primarily due to the use of convertible preferred equity for financing, which raises concerns among investors about potential dilution and increased volatility.