nLIGHT Inc: Down after Needham trims PT, cites macro concerns

nLIGHT

14/10/2019 16:20

** U.S. laser firm's shares  LASR.O  drop ~7% to $13.39, set
for their worst day in almost 5 months, after Needham cuts PT
    ** Brokerage trims PT by $1 to $18, citing lower spending
due to slowing global growth and a stagnant manufacturing
environment that could hit LASR's earnings
    ** Needham cuts estimates for LASR's FY2020 revenue and
adjusted profit; says China remains competitive with aggressive
pricing
    ** Brokerage estimates China industrial market now
represents 23% LASR's of total revenue from ~33% last year; says
company's Chinese customers fell an estimated 12% year-over-year
    ** The ongoing U.S.-China trade war is hurting LASR' gross
margins - Needham 
    ** 5 of 10 brokerages rate the stock "buy" or higher, while
others have a "hold" rating; median PT is $18 - Refinitiv data
    ** Including Monday's losses, LASR has fallen ~25% this year

 (Reporting by Amal S in Bengaluru)
 ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780;
outside U.S. +91 80 6749 0536;))