Lake Street Capital Markets raised its price target on Velo3D (NASDAQ: VELO) to $18 from $6 while maintaining a Buy rating, citing long-term structural tailwinds and improving balance sheet visibility.

The firm said that despite the stock's sharp rebound from earlier lows, it did not believe investors had missed the opportunity. Lake Street pointed to sustained tailwinds including manufacturing reshoring, America-First policy initiatives, rising defense spending, and increased focus on securing domestic supply chains, all of which it believed created a long growth runway for the company.

The analyst added that while many institutional investors were familiar with Velo3D by name, fewer had fully appreciated changes under the new management team, the revised strategy, or the accelerating momentum in aerospace, defense, and space end markets. Lake Street said recent financing activity alleviated prior balance sheet concerns, which should support valuation expansion despite the firm adopting more conservative estimates.

With exposure to reshoring, aerospace and defense spending, and growth metrics that exceed peer averages, Lake Street said it saw meaningful upside potential from current valuation levels.