Lumentum price target raised to $92 from $85 at Morgan Stanley

Morgan Stanley analyst Meta Marshall raised the firm’s price target on Lumentum (LITE) to $92 from $85 and keeps an Equal Weight rating on the shares. Given the meaningful positive revisions seen in cloud capex last week, enthusiasm for optical AI names has “re-reached highs from earlier this year,” notes the analyst, who sees limited opportunity for multiple expansion in the near term, but does see opportunities for positive estimate revisions for both Lumentum and Coherent (COHR) into the companies’ fiscal Q4 prints. Given that Lumentum already pre-announced in early June, the firm thinks that Coherent is better positioned into the print, the analyst added.