William Blair initiated coverage of nLight with an Outperform rating. The firm estimates $80B is spent annually on U.S. and allied air defense systems, and it expects laser systems to take share from this total addressable market. Lasers are an emerging technology in modern warfare to defeat the low-cost drones and cruise missiles that have featured prominently in the Ukraine and Middle East conflicts, the analyst tells investors in a research note. Blair says that with 25 years of semiconductor innovation, nLight is the leading designer and manufacturer of key high-power laser technologies focused on the defense sector. Blair sees over 20% upside in the shares, driven by aerospace and defense growth and support from recent defense tech private valuations.
