Canaccord Genuity reduced its price target on LightPath Technologies to $15.50 from $16.50 on Monday, citing delays in the U.S. Army's Next Generation Short Range Interceptor program.
The analyst firm noted the Army issued a market survey seeking potential new suppliers for the program, which replaces the legacy Stinger missile. The move introduces uncertainty over procurement timing and may expand competition beyond Lockheed Martin and Raytheon, the two contractors already engaged since 2023.
LightPath Technologies' stock closed at $11.23 on August 28, down 18.56% or $2.56 for the session, extending a weekly decline of 15%. The shares have delivered a 110% return over the past year despite the company remaining unprofitable, with revenue growth of 87% in the last twelve months.
Canaccord maintained its view that any competing design would face a significant lag, as Lockheed Martin and Raytheon have completed roughly three years of design, qualification, and testing work. The Army originally planned a production contract decision in the fourth quarter of 2026, with a demonstration scheduled for spring 2027.
LightPath partnered with Lockheed Martin in 2023 to supply an advanced thermal camera system for the missile's seeker head. The company also reported an $11 million follow-on purchase order for infrared cameras from a global technology customer for counter-unmanned aircraft systems applications, transitioning from germanium-based optics to proprietary BlackDiamond materials.
In a separate development, LightPath divested its China business to focus on the domestic defense market. Piper Sandler initiated coverage on the stock with a $15.00 price target earlier this year.
