Canaccord Genuity reduced its price target on LightPath Technologies to $15.50 from $16.50, citing delays in the U.S. Army’s Next Generation Short Range Interceptor program, which aims to replace the legacy Stinger missile.
The U.S. Army issued a market research notice in August to explore additional suppliers before proceeding with the acquisition phase, potentially expanding the program beyond Lockheed Martin and Raytheon, the two primary contractors. Canaccord noted that any new entrant would face a competitive disadvantage, as Lockheed and Raytheon have invested roughly three years in design, qualification and testing.
LightPath, which partnered with Lockheed Martin in 2023 to supply an advanced thermal camera system for the missile’s seeker head, saw its shares fall 18.56% to $11.23 in the session cited by the report. The stock has declined 15% over the past week but remains up 110% over the past year despite operating at a loss. Revenue grew 87% over the prior twelve months.
The Pentagon originally projected a production contract decision in the fourth quarter of 2026, with a demonstration scheduled for spring 2027. Canaccord’s adjustment follows Piper Sandler’s maintained $15.00 target with an overweight rating. LightPath also secured an $11 million order for anti-UAS infrared cameras, transitioning from germanium-based optics to its proprietary BlackDiamond materials, and has exited its China operations to focus on domestic defense contracts.
