Lumentum price target lowered to $75 from $80 at Craig-Hallum

Craig-Hallum analyst Richard Shannon lowered the firm’s price target on Lumentum to $75 from $80 and keeps a Buy rating on the shares. The analyst notes that Lumentum’s 52% decline in 2022 isn’t much worse than its largest optical competitor Coherent (COHR), but it’s much worse when considering that II-VI took on over $4B of debt in a rising interest rate environment to buy Coherent, while Lumentum’s NeoPhotonics (NPTN) acquisition was all cash. Most of Lumentum’s struggles this year can be attributed to supply chain challenges in Telecom, inventory burns in Datacom and 3DS share losses, Shannon adds.