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Lumentum (LITE) PT Raised to Street High $120 at MKM Partners, 'Buy The Weakness'

November 6, 2020 8:15 AM EST
Get Alerts LITE Hot Sheet
Price: $47.73 -1.49%

Rating Summary:
    13 Buy, 7 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 13 | Down: 10 | New: 11
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MKM Partners analyst Michael Genovese raised the price target on Lumentum (NASDAQ: LITE) to $120.00 while maintaining a Buy rating.

The analyst comments "We are setting a Buy rating on LITE and increasing our price target to a Street-high of $120, which represents an over 40% upside to LITE's stock price of $88.42 as of 11/05/20. Core to our bullish thesis is: 1) We see a significant opportunity for LITE in the 400G+ optical upgrade cycle; 2) broader and deeper adoption of LITE's 3D-sensing technology; 3) an eventual rebound in demand for industrial lasers from the manufacturing sector; and 4) our view that LITE's long term operating model is tracking ahead of the Street's expectations primarily because investors have not fully appreciated LITE's ROADMs and photonic integrated circuits (PICs) technologies are the workhorses upon which our global digital infrastructure is built. Simply put, the world is shifting to photons from electrons as demand for computing and bandwidth grows, which should benefit LITE. Moreover, we see improvement in LITE's revenue growth and margin, and thereby EPS trajectory from TAM expansion opportunities in 3Dsensing — from increasing adoption of 3D-sensing in consumer applications, and LiDAR applications in autonomous driving."



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