Kopin (KOPN) has been on a tear of late, rising from $5.25 in January to its current price of $9.09. However, KOPN was trading at $13.56 in mid-February. This electronics manufacturer creates screens for mobile devices. In particular, KOPN makes mini flat panel displays.

KOPN also makes transistor wafers along with additional commercial semiconductor products to boot. Though KOPN soared of late, it is worth noting the stock primarily traded sideways between 2004 and 2020.

Will KOPN’s epic run continue, or has the stock run out of steam? Let’s find out.

Why KOPN is on the Rise

KOPN is currently trading around $4 below its 52-week high of $13.62. The stock’s 52-week low is a mere 19 cents. KOPN was trading around $2 up until January when it took off, climbing to $5, then jumping to $13 and change in February.

KOPN’s rapid ascension is largely the result of its recent announcement that it has established a new development agreement with a leading medical tech company, HMDmd. The partnership is important as it sets the stage for KOPN to add its displays to wearable products, including head-worn systems used by surgeons to tap into real-time information with a comparably high resolution. This means surgeons and other medical professionals will be able to view diagnostic data, including patient information, without shifting their view to a conventional monitor.

It is quite possible KOPN’s partnership will result in its display screens being used for surgeries across the globe within the next half-decade or sooner. However, this partnership is only part of the explanation for KOPN’s ascension. KOPN announced two other development agreements in recent months. The company also stated it would be licensing its wearable display technology to an unidentified customer.

KOPN’s Virtual Reality Investment

KOPN is also drawing investor interest due to its partnership with Panasonic for a virtual reality project. KOPN’s micro displays will be used in Panasonic’s virtual reality glasses. This incredible piece of technology was demonstrated at the 2021 Consumer Electronics Show (CES) in Las Vegas, wowing observers from across the globe.

KOPN’s Lightning OLED display on chip will be used within the virtual reality glasses, providing high-dynamic-range and ultra-high-definition visuals. However, what matters most is the design of these futuristic virtual reality glasses. Unlike most other virtual reality headsets, the glasses created by KOPN and Panasonic are small and lightweight, featuring 1.3″ displays that seamlessly integrate with other components. The announcement of this partnership comes on the heels of yet another KOPN power move in which it inked a multi-year agreement with Jade Bird Display for the use of its display screens.

Though virtual reality has had a slower adoption rate in 2021 than most futurists anticipated, it is only a matter of time until the masses hop on the virtual reality bandwagon. The reduction in the size of virtual reality glasses, as evidenced by Panasonic’s glasses made in unison with KOPN certainly bodes well for the tech’s future as the diminutive size is that much more appealing to everyday people who are on the fence as to whether virtual reality devices are worth buying.

The Analysts’ Take on KOPN

The two analysts who have issued recommendations pertaining to KOPN are split down the middle between Buy and Strong Buy. The analysts’ high target price for KOPN is $5.50. The analysts’ low target price for the stock is $3.50.

KOPN POWR Ratings

KOPN has an A grade in the Sentiment component of the POWR Ratings and a B grade in the Growth component. However, KOPN has a C grade in the Quality and Momentum components. You can find out more about how KOPN performs in the remainder of the POWR Ratings components such as Stability and Value by clicking here.

Of the 51 stocks in the Technology – Hardware industry, KOPN is ranked 39th. The entire Technology – Hardware industry has a B rating. Investors who would like to find other top stocks in the Technology – Hardware industry can do so by clicking here.

Will the Climb Continue?

Possibly. Investors who have been waiting on the sidelines should continue waiting for profit taking to run its course. If KOPN slides another 10% to 20% as a result of the market’s recent bearish trend and investors taking profit off the table, it could quickly bounce back when those waiting on the sidelines swoop in to buy low.

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KOPN shares fell $0.12 (-1.26%) in premarket trading Wednesday. Year-to-date, KOPN has gained 277.78%, versus a 3.43% rise in the benchmark S&P 500 index during the same period.

About the Author: Patrick Ryan

Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management. More...

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