Kopin Corporation (NASDAQ: NASDAQ:KOPN) has retained its Buy rating and $2.50 price target from Lake Street Capital Markets.
The firm's stance remains positive despite recent legal challenges faced by Kopin, which resulted in a court ruling awarding BlueRadios $5.1 million in damages and recommending an additional $19.7 million in disgorgement and exemplary damages.
Kopin has contested the verdict and is currently awaiting the judge's decision, after which it may appeal.
Lake Street Capital Markets highlighted Kopin's strong cash position, estimated at approximately $44 million after accounting for expected net proceeds from a capital raise and $18.7 million in cash from the end of the second quarter.
This financial standing is anticipated to alleviate concerns regarding the potential litigation payment and refocus investor attention on the company's expanding defense sector engagements.
Kopin's recent wins in the defense market have been noted as a positive indicator for the company's future. The strategic focus on this sector is believed to be positioning Kopin for sustained growth. Lake Street Capital Markets' outlook is buoyed by the management's direction and the company's momentum in this area, as detailed in their September 16, 2024, note.
In other recent news, Kopin Corporation has announced a public offering of 37,550,000 shares of common stock priced at $0.65 each, along with pre-funded warrants to purchase an additional 4,000,000 shares.
The company aims to raise approximately $27 million before fees and expenses, with Canaccord Genuity serving as the sole book-running manager. On the product front, Kopin has introduced a new SXGA-R15 drive board for 3D Automated Optical Inspection machines and secured a $2 million order from Collins Aerospace for active-matrix liquid crystal displays.
The company's Q1 2024 financial performance showed a 7% decrease in total revenues, amounting to $10 million, and a net loss of $32.5 million. Despite these figures, Kopin has a backlog exceeding $55 million for 2024 and beyond, with Lake Street Capital Markets maintaining their Buy rating on the company.
In governance developments, Paul V. Walsh, Jr., a seasoned financial executive with semiconductor expertise, has been added to Kopin's Board of Directors.
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