Lumentum initiated with a Buy at Citi

Citi initiated coverage of Lumentum (LITE) with a Buy rating and $165 price target. The firm continues to see further upside despite shares being up over 50% year-to-date, notes the analyst, who prefers Lumentum to Coherent (COHR) over the next twelve months, citing the view that Lumentum will be “more agnostic” to AI optics technology changes and module share dynamics. The firm views Lumentum as “well on track” to outpace both the company and Street’s longer-term expectations, the analyst added.