Susquehanna analyst Christopher Rolland reiterated a Buy rating on Lumentum Holdings (LITE – Research Report) today and set a price target of $95.00.
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Christopher Rolland has given his Buy rating due to a combination of factors that highlight Lumentum Holdings’ strong performance and future growth potential. The company has shown impressive results, particularly in the transceiver segment, with a significant quarter-over-quarter increase driven by AI cluster build-outs and expanding customer engagements. This growth is supported by a robust demand from cloud customers and a recovering networking market, which has positively impacted their Cloud & Networking and Telecom sectors.
Lumentum’s strategic capacity expansion in EML and CW lasers, along with early production shipments for Nvidia’s upcoming CPO switches, positions the company well for future revenue gains. The company’s ability to manage costs effectively and improve gross margins, despite higher material costs and tariffs, further strengthens their financial outlook. Additionally, the ongoing development in OCS and CPO technologies presents promising long-term opportunities. These factors collectively underpin Rolland’s confidence in Lumentum’s trajectory, justifying the Buy rating and a price target of $95.
In another report released today, Rosenblatt Securities also reiterated a Buy rating on the stock with a $94.00 price target.