Lumentum (LITE) PT Raised to $123 at Needham & Company on COHR Merger Termination

March 25, 2021 11:36 AM EDT
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Price: $93.19 +0.16%

Rating Summary:
    16 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 17 | Down: 13 | New: 41
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Needham & Company analyst Alex Henderson raised the price target on Lumentum (NASDAQ: LITE) to $123.00 (from $120.00) while maintaining a Buy rating as it will to receive $217.6MM cash from the COHR merger termination.

The analyst commented, "Lumentum announced that it has received notice of Coherent's merger agreement termination. Additionally, Coherent announced today that its board has voted approve II-VI's latest bid for $220 in cash and 0.91 IIVI Shares for every COHR share. Due to Coherent's merger termination with Lumentum, Lumentum is expected to receive $217.6 million in a cash payment from Coherent due to the termination fee that was included in Lumentum and Coherent's signed definitive agreement from January 2021. This cash payment equates to nearly $3 per LITE share. As such, we are increasing our price target to $123 from $120 to reflect the future cash payment. What does Lumentum do now? It is hard to tell, but regardless, we do not believe Lumentum is under pressure to get a deal done given the cyclical upswing they are seeing in the markets."

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