Kopin Corp.'s (KOPN:NASDAQ) AWE 2025! Vision-Tech Roadshow stop in San Francisco on June 9 was attended by Senior Research Analyst Jaeson Schmidt with Lake Street Capital Markets, and he shared his takeaways in a June 11 research note. Kopin develops innovative display and optical technologies and sells them as critical components and subassemblies for defense, industrial and consumer products.
"We had a chance to see some of the company's solutions, including its CR3, DARKWAVE, DAYVAS, NeuralDisplay and MicroLED," Schmidt wrote. "We came away impressed with Kopin's capabilities and the technology roadmap."
54% Suggested Uplift
Lake Street Capital reiterated its $2.50 per share price target on the Massachusetts-headquartered optical tech firm.
"We continue to think shares can work higher given the conservative bar for 2025, our expectation for continued contract win announcements and line of sight to break even," Schmidt wrote.
At the time of Schmidt's report, KOPN was trading at about $1.62 per share, the analyst noted. The target implies a potential return for investors of 54%. The company has 166.1 million shares outstanding and a market cap of $264 million.
Kopin is a Buy.
Investment Thesis
In his report, Schmidt shared some of his thoughts about Kopin and its future. As the only U.S.-based microdisplay company, it should benefit from the country's new priorities to reshore manufacturing and reduce vulnerabilities in the national supply chain.
Kopin should be able to capture an increasing share of the global microdisplay market, forecasted to reach $6 billion ($6B) in value in 2028 from $2B in 2022, according to Research and Markets. The proliferation across a rising number of end markets, including aerospace, auto, consumer, defense, industrial and medical, is fueling growth.
The momentum behind recent orders coming in should continue, and the outlook for this year very well may wind up being conservative.
"Ultimately, we believe Kopin can be a consistent double-digit revenue grower with margins marching toward the goal of 40%," Schmidt wrote.
In other news, Kopin will participate in Lake Street's 9th Annual Best Ideas Growth (BIG) Conference on Sept. 11 in New York.
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