Lumentum Holdings (LITE – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Ryan Koontz from Needham maintained a Buy rating on the stock and has a $100.00 price target.
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Ryan Koontz has given his Buy rating due to a combination of factors including Lumentum Holdings’ strong financial performance and positive future outlook. The company exceeded expectations in its third fiscal quarter of 2025, with revenue and earnings per share surpassing consensus estimates. This success was driven by robust demand in the telecommunications sector, particularly from cloud operators, and record achievements in datacom, specifically in EML lasers.
Looking ahead, Lumentum is expected to continue benefiting from strong demand, especially with the anticipated increase in 800G datacom modules for major customers like Google. Additionally, the company is expanding its production capacity and securing new module customers, which is projected to contribute to significant growth in fiscal year 2026. Despite potential risks from tariffs, management is optimistic about avoiding these costs and hopeful for favorable changes in U.S. policies regarding Thailand. These factors, combined with an adjusted price target due to broader market conditions, underpin Koontz’s Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $75.00 price target.