Laser Photonics jumps after $13.2M US Navy order

On June 3, Laser Photonics’ shares nearly doubled after the US Navy placed a $13.2 million follow-on order for the company’s handheld and robotic laser cleaning systems for use at naval shipyards. The announcement prompted heavy intraday buying and a short squeeze.

In a June 3 press release, the company wrote the order expands use of its CleanTech laser blasting systems for corrosion control, paint removal and hull maintenance across naval shipyards. The release said the systems are intended to remove hazardous waste and toxic dust linked to traditional sandblasting and to help the Navy meet stricter environmental compliance requirements.

Market data showed the stock reached an intraday peak more than seven times its early-February price. The relative strength index climbed into the early 90s, a level market technicians view as extremely overbought. The Nasdaq-listed stock traded above key moving averages on multiple timeframes during the rally.

Short interest on Laser Photonics was about 11% heading into June. The Navy news at the opening bell forced some short sellers to buy back shares to cover positions, accelerating the price rise in a short-squeeze pattern. Options activity showed bullish positioning, with the upper price on contracts expiring mid-October trading above $7.

Northland Capital upgraded the stock to Outperform and raised its price target to $9.50, writing that a repeat Navy order indicates deeper integration with defense procurement. The firm noted the company’s gross margin on the proprietary laser systems is near 55%.

The company remains classified as a penny stock and continues to trade with high volatility. At intraday levels, the share-price multiple approached roughly four times sales. Prior business with the Navy and the follow-on order reflect continued adoption of laser cleaning technology in government shipyards.