Lake Street Boosts LightPath (LPTH) PT to $14 on Record $90M Backlog, Drone Sector Expansion

LightPath Technologies Inc. (NASDAQ:LPTH) is one of the hot tech stocks to invest in. On January 6, Lake Street raised the firm’s price target on LightPath to $14 from $10, while maintaining a Buy rating on the shares. Building on a strong performance in 2025, the firm believes that LightPath is well-positioned to maintain its growth trajectory throughout 2026. This outlook is supported by a record $90 million backlog and a shift toward high-value infrared imaging systems and germanium-free BlackDiamond optics. As the company scales production to meet new orders in the defense and drone sectors, the firm expects this operational momentum to drive sustained market leadership in the coming year.

In its FQ1 2026 earnings report, LightPath Technologies Inc. (NASDAQ:LPTH) saw a 79% year-over-year revenue surge to $15.1 million. This performance, which was up from $8.4 million in the same period last year, reflects the company’s successful pivot from a simple component manufacturer to a vertically integrated provider of high-value infrared/IR systems and subsystems. This shift is further evidenced by a record total backlog of ~$90 million, of which more than two-thirds now consists of complex systems.

Key to this growth is the company’s proprietary BlackDiamond/G5 glass, which is a germanium-free material that addresses critical supply chain vulnerabilities. As global restrictions on germanium intensify, LightPath has begun producing Germanium-free G5 camera variants. This tech attracted major interest, leading to new contracts, including an $18.2 million order scheduled for delivery in 2026 and a follow-on $22.1 million order for 2027. The company also secured an $8 million investment from Ondas and Unusual Machines to accelerate its footprint in the drone and UAV infrared imaging market.

LightPath Technologies Inc. (NASDAQ:LPTH) designs, develops, manufactures, and distributes optical systems and assemblies in the US.

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Disclosure: None. This article is originally published at Insider Monkey.