Barclays Upgrades Lumentum (LITE) to Overweight

Barclays analyst Tom O'Malley upgraded Lumentum (NASDAQ: LITE) from Underweight to Overweight with a price target of $125.00 (from $80.00).

The analyst comments: "We had our doubts that LITE could scale the module business beyond GOOGl, but the combination of massive port count increases, combined with a strong desire to use a U.S. supply chain, have driven hyperscalers to qualify at an alarmingly fast rate. We would normally wait to jump on the horse after what appears to be a poorly modeled Q1 vs. normal seasonal downtick (company guided down LSD% in Q1 vs. Street up 6%) but our math suggests that the opportunity is so large in 2025 (port count +59% Y/Y, LITE Datacom rev +76% Y/Y) that we need to get on the right side of history. COHR should also see the benefits of expanding ports, but the stock also is contingent on asset divestitures. Our CY26E LITE EPS moves to $4.91 vs. Street $4.36."

For an analyst ratings summary and ratings history on Lumentum click here. For more ratings news on Lumentum click here.

Shares of Lumentum closed at $89.36 yesterday.

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