Needham analyst Ryan Koontz maintained a Buy rating on Lumentum Holdings (LITE – Research Report) today and set a price target of $110.00.
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Ryan Koontz has given his Buy rating due to a combination of factors highlighting Lumentum Holdings’ strong performance and strategic positioning. The company reported impressive financial results for the second fiscal quarter of 2025, exceeding revenue and earnings per share expectations by a notable margin. This positive performance was largely driven by a surge in demand within the telecommunications sector, particularly from cloud operators, and a revival in service provider inventory levels.
Additionally, Lumentum’s datacom segment experienced record sales in key product areas such as EML laser chips and transceivers. The company demonstrates strong operational leverage, which is expected to support ongoing operating margin expansion into the fiscal year 2026. Furthermore, management’s confidence in future growth is evident from their plans to expand EML fabrication capabilities and secure new hyperscale transceiver contracts. These strategic directions underpin the Buy rating with a price target of $110, suggesting considerable upside potential.
In another report released today, Barclays also maintained a Buy rating on the stock with a $125.00 price target.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LITE in relation to earlier this year.