MKM Partners Raises Price Target on Lumentum Holdings (LITE) to $50; Reiterates Buy
- Wall Street rises, buoyed by economic data; Dow sets high
- Twitter (TWTR) 'Takeover Money' Moves On as 'Trump Money' Moves In
- Amazon (AMZN) Could Open Over 2,000 Brick-and Mortar Groceries if Tests Succeed - DJ; Kroger (KR) on Watch
- Buy Any Seasonal Market Weakness Ahead of Year End Rally - Oppenheimer (SPY)
- After-Hours Stock Movers 12/05: (TXMD) (COUP) (BOBE) Higher; (SB) (LXRX) (STWD) Lower (more...)
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
MKM Partners reiterated a Buy rating on Lumentum Holdings (NASDAQ: LITE), and raised the price target to $50.00 (from $37.00), after adjusting estimates. The increase in 2017 and 2018 estimates is driven by the concurrent 100+G Optical cycles in China, Data Center, DCI and Metro.
Analyst Michael Genovese commented, "We are increasing our FY17 and FY18 revenues, GMs and EPS forecasts driven by the concurrent 100+G Optical cycles in China, Data Center, DCI and Metro. We are not yet modeling Lumentum's 3D sensor for the smartphone camera opportunity, which should begin to positively contribute to revenues and margins roughly a year from now. The coming smartphone opportunity should drive multiple accretion for the stock, so we are increasing our target multiple on our FY18E EPS to 20x from 17x. Our new 12-month price target of $50 (up from $37) is based on 20x our FY18E EPS plus $2.50 in net cash per share."
Shares of Lumentum closed at $40.97 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Goldman Sachs Downgrades Marvell (MRVL) to Sell
- Credit Suisse Upgrades National Beverage (FIZZ) to Outperform
- Micron (MU) PT Raised to $25 at Brean Capital; Upbeat on Low Inventories
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!