Lumentum (LITE) PT Raised to $80 at Needham & Company; 3D Sensing Could Double LITE's Value

Needham & Company raised its price target on Lumentum (NASDAQ: LITE) to $80.00 (from $56.00) while maintaining a Strong Buy rating as 3D Sensing is set to boom and could double the company's value.

Analyst Alex Henderson commented, "3D Sensing represents a major discontinuity in the trajectory of LITE's business as such its challenging to forecast and creates modeling anxiety. The scale of the opportunity is becoming more and more evident and LITE's confidence in the outcome seems to be strengthening daily. LITE's management's commentary ."suggest the ramp is now visible, the share could be larger than previously expected, and with "better than expected yields" the margins even richer than previously thought. While we are not yet including 3D in our model, we are doubling our estimation of the contribution to LITE's results in CY17 and CY18 based on our visit. In addition, Lumentum is seeing ROADM and pump orders from China strengthening. We are also increasing our Target Price to $80 from $56 and Reiterating LITE's Strong Buy and SBI status for CY17

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