LightPath Technologies (NASDAQ:LPTH) shares rose more than 15% intra-day today after Lake Street Capital Markets analysts increased the price target for the stock to $4 from $3 while maintaining a Buy rating. According to the analysts, the optics and photonics company is positioned for continued growth and stands out as a top investment idea for 2025, driven by its robust pipeline and strategic market opportunities.

After a remarkable performance this year, with shares surging 146% compared to the Russell 2000’s 12% gain, LightPath’s momentum is expected to carry into the next year. Recent years have seen revenue impacted by declines in business from China, but the company has successfully backfilled this gap, allowing its solid design wins to gain recognition.

Additionally, China’s ban on germanium exports to the U.S. is poised to benefit LightPath, as its proprietary Black Diamond materials offer a compelling alternative. This geopolitical shift could enhance the company’s market positioning, driving demand for its innovative solutions.

Key catalysts for LightPath include growing investor interest in its expanding pipeline and potential breakthroughs such as the transformational Lockheed missile program, which could provide a significant boost to revenue and market perception. The analysts also highlighted the potential for multiple expansion as these developments unfold.

While bullish on LightPath’s prospects, the firm acknowledged potential risks and challenges but remains confident in the company’s ability to capitalize on emerging opportunities.