Lumentum (LITE) PT Raised to $380 at Rosenblatt

Rosenblatt analyst Mike Genovese raised the price target on Lumentum (NASDAQ: LITE) to $380.00 (from $280.00) while maintaining a Buy rating.

The analyst comments "After our recent Bus Tour meeting with management, we are increasing our Lumentum estimates and price target. A wise man once told the world early that AI would be the Mother of All Cycles, and never has this been more apparent for the best positioned companies. We see LITE as the single best positioned name in our coverage for AI scale up, scale out, and scale across. The next best tier is Fabrinet (FN, Buy) and Ciena (CIEN, Buy). Coherent (COHR, Buy) is now more of a show-me story (can it execute in 200G EMLs and ultra-high power CPO lasers?). AAOI (Buy) has been a show me story for quite some time and needs to begin delivering positive 400G and 800G results with key returning customer Amazon starting this quarter. For LITE, we are 7% of ahead of consensus of FY26 and FY27 revenues, and 12% to 17% above on EPS. Our new $380 price target, up from $280, is based on 40x our FY27 EPS number. However, our new estimates still look very conservative. We see reasonable upside and bull cases where FY27 EPS could be $14 to $19. At the mid-point of this range, or $16.50, the stock is trading at 18x and our price target represents 23x."

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