Lumentum upgraded to Overweight from Underweight at Barclays

Barclays analyst Tom O’Malley double upgraded Lumentum (LITE) to Overweight from Underweight with a price target of $125, up from $80. The firm says the combination of “massive” port count increases, combined with a strong desire to use a U.S. supply chain, have driven hyperscalers to “qualify at an alarmingly fast rate.” The firm’s math suggests Lumentum’s module business opportunity is so large in 2025 “that we need to get on the right side of history.” Barclays is now incrementally positive on Lumentum as it sees module share gains and capacity expansions driving a strong multi-year growth profile across 2025 and 2025.