Meta Marshall, an analyst from Morgan Stanley, maintained the Hold rating on Lumentum Holdings. The associated price target was raised to $100.00.
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Meta Marshall has given his Hold rating due to a combination of factors influencing Lumentum Holdings’ current market position. The company has demonstrated strong performance, particularly in its component and transceiver businesses, with significant year-over-year and quarter-over-quarter growth. This positive momentum is supported by robust demand in the cloud sector, which has contributed to encouraging financial results for the fiscal quarter.
Despite these positive indicators, the stock’s price has already appreciated significantly, rising by 50% since a pre-announcement in June. This suggests that much of the anticipated growth is already reflected in the current stock price. Additionally, while there is potential for further margin improvements if the company successfully streamlines its operations, the ability to meet elevated market expectations remains uncertain. These considerations have led to a cautious approach, resulting in a Hold rating.
In another report released on July 31, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $118.00 price target.