DA Davidson analyst Thomas Diffely initiated nLight (LASR) with a Buy rating and a price target of $40, saying the company is an "emerging player" in the $2B fiber laser market. Diffely believes that nLight is poised to grow at double-digit annual pace for several years, adding that customers and investors are looking for an alternative to its primary competitor - IPG Photonics (IPGP) - to reduce company specific risk and generate "a more competitive market environment." The analyst models nLight to post a 26% revenue growth and a 50% EPS growth for next year.