Lumentum price target raised to $290 from $235 at Needham

Needham raised the firm’s price target on Lumentum (LITE) to $290 from $235 and keeps a Buy rating on the shares after meeting with its management team, saying the firm has come away from the discussions incrementally bullish on this “Top Pick for 2025” opportunity in data center optics over the coming years. Lumentum is confident that its aggressive capacity expansion investments will enable it to remain the largest commercial laser supplier to the cloud industry, the analyst tells investors in a research note. Lumentum production capacity is also fungible, so the company can easily adapt to demand for both EML or SiPho transceiver designs, the firm added.