UPDATE: Raymond James Upgrades Lumentum (LITE) to Strong Buy as it Walks Away from Coherent Deal
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Raymond James analyst Simon Leopold upgraded Lumentum (NASDAQ: LITE) from Outperform to Strong Buy with a price target of $112.00.
The analyst commented, "We take Lumentum to Strong Buy from Outperform following its decision to walk from bidding on Coherent and accepting the $218M break-up fee. We liked, but did not love, the deal when it was first announced, but the bidding war ended at an elevated valuation for Coherent. Investors may now debate what Lumentum does next. We believe management's decision demonstrates its discipline in selecting its battles. With the deal risk behind us, and upside led by 3D sensing, telecom, LiDAR and 5G, we see an attractive entry point. Our target remains $112."
Shares of Lumentum closed at $88.49 yesterday.
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