Lumentum price target raised to $60 from $50 at BofA

BofA analyst Vivek Arya raised the firm’s price target on Lumentum (LITE) to $60 from $50 and keeps an Underperform rating on the shares. Lumentum delivered “strong results” with sales and pro-forma EPS 10% and 30% ahead of expectations, respectively, in the December-end quarter, the analyst noted. Still, the surge in growth “comes at a high cost,” with gross margins taking a somewhat more muted expansion trajectory than the firm had previously forecast while opex is expected to climb, the analyst tells investors.