Ryan Koontz, an analyst from Needham, maintained the Buy rating on Lumentum Holdings. The associated price target was raised to $290.00.
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Ryan Koontz has given his Buy rating due to a combination of factors that highlight Lumentum Holdings’ strong position in the market. The company’s strategic investments in expanding its production capacity are expected to solidify its status as a leading supplier of commercial lasers to the cloud industry. This expansion is crucial as the demand for their InP, EML, and CW laser products continues to outpace supply globally.
Furthermore, Lumentum’s ability to adapt its production to meet the growing demand for EML or SiPho transceiver designs positions it well against competitors. The company’s specialized skills in InP fabrication, a field with limited large-scale suppliers, further enhance its competitive advantage. These factors contribute to a positive outlook for Lumentum Holdings, justifying the Buy rating and an increased price target.
According to TipRanks, Koontz is a 4-star analyst with an average return of 8.4% and a 44.70% success rate. Koontz covers the Technology sector, focusing on stocks such as Lantronix, Ceragon Networks, and Extreme Networks.
In another report released on November 18, Mizuho Securities also initiated coverage with a Buy rating on the stock with a $290.00 price target.