Lumentum upgraded to Strong Buy from Outperform at Raymond James

Raymond James upgraded Lumentum (LITE) to Strong Buy from Outperform with a price target of $82, down from $96, following Nvidia’s GTC keynote address and Corning’s analyst day meetings. Concerns over co-packaged optics are overblown, which has pressured the stock, and Raymond James’ datacom optical model indicates strong 800G demand, the analyst tells investors in a research note. The firm’s new model forecasts $22.2B in artificial intelligence backend transceiver sales by 2030, representing a 30% annual growth versus 2024. With Coherent and Lumentum stocks under pressure into the fiber optic communications trade show this year, greater clarity on co-packaged optics and the market opportunity overall could provide a positive catalyst, contends Raymond James.