Rosenblatt analyst Jun Zhang reiterated a Buy rating and $80.00 price target on Lumentum (NASDAQ: LITE) after the company closed the sale of its datacom product line to CIG. This will result in a be a $20-$25 million negative revenue impact per quarter but an uptick in gross and operating margins.

The analyst stated "We believe the decline in revenues are offset by the potential uptick in margins. We are adjusting our CY2019 revenue and margin estimates to reflect the divestiture but keeping our EPS estimates
unchanged".

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 $61.88 yesterday.