Stifel Maintains Buy Rating on Lumentum (LITE), Raises Price Target to $100

On June 5, Stifel analysts lifted their price target for Lumentum Holdings Inc. (NASDAQ:LITE) to $100 from $85 while maintaining a ‘Buy’ rating. The adjustment is a reaction to Lumentum’s updated guidance for Q4 FY2025.

Lumentum raised its revenue forecast to $470 million for the fourth quarter. It also revised the adjusted operating margin to 14.5% and adjusted earnings per share to $0.83. Management attributes the positive outlook to broad-based strength across the company’s core businesses.

The company has accelerated its long-term revenue targets significantly. Lumentum expects to achieve its $500 million revenue goal by Q1 fiscal 2026, a quarter earlier than anticipated. The company also aims to reach a $600 million revenue target by Q4 FY2026 or Q1 FY2027.

Presenting at an investor conference on Thursday, Lumentum’s management highlighted acceleration in compute infrastructure developments. They said these contribute positively as the company secures content within the emerging AI ecosystem.

According to Stifel analysts, the revised guidance indicates faster-than-expected product rollouts driven by improved execution and focus on core projects. They also stated that infrastructure developments demonstrate Lumentum’s ability to execute its strategic initiatives while benefiting from favorable market conditions in its key segments.

Lumentum Holdings Inc. (NASDAQ:LITE) is a technology company that designs and manufactures optical and photonic products for cloud networking, AI infrastructure, and industrial applications. The company serves communications and commercial laser customers. Its key products include optical components, modules, and subsystems for applications in data centers, telecommunications networks, and industrial manufacturing.

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