Lumentum price target raised to $76 from $70 at Morgan Stanley

Morgan Stanley analyst Meta Marshall raised the firm’s price target on Lumentum (LITE) to $76 from $70 and keeps an Equal Weight rating on the shares after the company positively revised Q4 expectations ahead of a conference appearance this week. The revised Q4 guidance mid-point is about 3% ahead of the prior range on the top-line and about 11% on the bottom line, while the company also noted a belief that they can reach $500M in quarterly revenue a quarter sooner than prior expectations, notes the analyst, who thinks the current valuation “seems reasonable” given the competitiveness of the business and expectations built into the name.