Lumentum initiated with a Buy at Rothschild & Co Redburn

Rothschild & Co Redburn initiated coverage of Lumentum (LITE) with a Buy rating and $1,270 price target The firm says the monetization of generative AI capex will require more intelligent large language models. The transmission of electrical signals down copper wires will increasingly give way to the transmission of photonic signals down optical fibers, .the analyst tells investors in a research note. Rothschild believes the transition represents a new addressable market for optical networking companies. However, some of opportunity has already been discounted by the market, the firm adds. It launched coverage of six names in the AI networking space with four Buys and two Neutrals.

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