Lumentum price target raised to $304 from $190 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Lumentum (LITE) to $304 from $190 and keeps an Equal Weight rating on the shares. The AI trade broadened out from semi names in 2025, helping infrastructure names, particularly within optical, notes the analyst, who believes that trade can continue, particularly in optical, through the first half of 2026. However, investors will “need to get more selective for full year returns given multiples,” the analyst added in a year-ahead note on the group.