Lumentum (LITE) PT Lowered to $800 at Needham

Needham analyst Alex Henderson lowered the price target on Lumentum (NASDAQ: LITE) to $800.00 (from $1,040.00) while maintaining a Buy rating.

The analyst comments "MRVL announced it would acquire LITE in an all-stock deal, an exchange rate of 4.5 MRVL for each LITE share. While we understand the industrial logic of the combination, seeking to solve the most difficult AI optical interconnect design challenges in scale-up and scale-in, we are surprised by the timing considering LITE's very strong business momentum and industry capacity dominance. Given the investor commentary and negative response on the stock, it's clear that many LITE shareholders are not excited to become MRVL shareholders. With an eye on the spread and potential challenges with closing, we maintain our Buy rating but remove LITE from our conviction list for the first time in 22 months."

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