B.Riley FBR Thinks Lightpath Technologies’ Stock is Going to Recover

In a report released today, Sarkis Sherbetchyan from B.Riley FBR assigned a Buy rating to Lightpath Technologies (NASDAQ: LPTH), with a price target of $2.60. The company’s shares closed yesterday at $2.09, close to its 52-week low of $1.97.

Sherbetchyan commented:

“After market close on 9/13, Buy-rated LightPath Technologies (LPTH, $2.60 PT) reported F4Q18 (Jun) sales at the high end of management’s preannounced range, but adjusted EBITDA and adjusted EPS missed both our and consensus expectations due to higher input costs and capacity constraints associated with its IR products. In that regard, the gross margin barely surpassed 30% and caused the de-leveraging of LPTH’s P&L. Consequently, shares decreased ~6% after hours. Despite the near-term cost pressures, demand for LPTH’s products remains robust. The company’s 12-month backlog rose 38% and bookings in F4Q18 were up 43% Y/ Y to $9.9M.”

According to TipRanks.com, Sherbetchyan is a 4-star analyst with an average return of 12.9% and a 61.2% success rate. Sherbetchyan covers the Consumer Goods sector, focusing on stocks such as Vishay Precision Group, S&W Seed Company, and Ferroglobe PLC.

Currently, the analyst consensus on Lightpath Technologies is a Moderate Buy with an average price target of $2.60.

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The company has a one-year high of $4.10 and a one-year low of $1.97. Currently, Lightpath Technologies has an average volume of 151.8K.

Based on the recent corporate insider activity of 11 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of LPTH in relation to earlier this year. Most recently, in June 2018, Joseph Gaynor, the President & CEO of LPTH bought 20,000 shares for a total of $19,600.

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LightPath Technologies, Inc. designs, develops, manufactures and distributes optical and infrared components. Its products include molded glass aspheres and assemblies; infrared molded lenses, diamond turned, conventional ground and polished and CNC ground lenses and assemblies; and Gradium lenses.