Lumentum (LITE) PT Raised to $115 at Needham & Company on Coherent Strength

Needham & Company analyst Alex Henderson raised the price target on Lumentum (NASDAQ: LITE) to $115.00 (from $105.00) after the CY2Q/FY4Q print exceeded forecasts and guidance on every metric. As COVID-19 constraints fall out, Coherent Backlog of $100 million looks to be coming into CY3Q. The company is seeing strong demand in Coherent products such as ACO/DCO and coherent components.

The analyst maintained a Buy rating, stating "demand for their highest margin products are running ahead of capacity. We stepped through the capacity addition timing with management, and expect solid growth in 3D Sensing, Data Comm, ROADMs and Coherent products to easily offset continuing cyclical pressures in Industrial Lasers. Gross Margins should continue to expand as a result. Moreover, the capacity adds suggest acceleration in the Revenues well into FY22".

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