BofA analyst Vivek Arya raised the firm’s price target on Lumentum (LITE) to $70 from $60 and keeps an Underperform rating on the shares. Q1 sales slight beat, mainly from better-than-expected Industrial Tech, while favorable mix and improving cloud module yield supported an uplift in gross margins, the analyst tells investors. While acknowledging the company’s range of opportunities to support AI, the firm reiterates an Underperform rating as it says consensus already models the $500M per quarter sales target in December and argues that further upward consensus revisions could be limited until there is better clarity on customer ramps and capacity additions.
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