Raymond James Lifts Lumentum (LITE) Price Target to $90, Maintains Strong Buy Rating

On June 4, Raymond James analysts raised their price target for Lumentum Holdings Inc. (NASDAQ:LITE) to $90 from $80 while maintaining a ‘Strong Buy’ rating. According to the analysts, a positive preannouncement and recent management discussions in Silicon Valley are the key factors supporting the upgrade.

Raymond James Lifts Lumentum Price Target to $90

A photograph of a technician using a microscope to examine a photonic device.

Lumentum released Q3 FY2025 earnings results on May 6, 2025, in which it surpassed quarterly expectations and revised upward its estimates for the upcoming quarters. The company’s earnings per share (EPS) for the quarter came in at $0.57 and revenue reached $425.2 million. The Cloud and Networking segment grew 8% sequentially and 16% year-over-year, which the company said was driven by a surge in 800G Datacom modules.

Therefore, Lumentum revised its guidance for the next quarter: management projects revenue to fall between $440 million and $470 million. EPS is projected to be a minimum of $0.70 and not to exceed $0.80. However, the company maintained its sales target of $600 million for June and September 2026.

The analysts highlighted the growing demand for artificial intelligence applications across Lumentum’s product portfolio. These include electro-absorption-modulated lasers, datacom transceivers, and ZR/DCI solutions. They noted that hyperscalers are moving away from Chinese manufacturers, creating growth opportunities for Lumentum despite ongoing capacity constraints.

Lumentum Holdings Inc. (NASDAQ:LITE) is a technology company that designs and manufactures optical and photonic products for cloud networking, AI/ML, enterprise communications, and industrial applications. It serves clients through two segments: Cloud & Networking (for high-speed transceivers and fiber-optic components) and Industrial Tech (for lasers for semiconductor manufacturing, solar cells, and precision micromachining).

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