Citi analyst Papa Sylla reiterated a Buy rating and a $1,100.00 price target on Lumentum (NASDAQ: LITE), according to a press release statement.

Sylla's note introduces a supply model for indium phosphide components, including EML and CW lasers. When combined with Citi's China networking team's optical demand model, the analysis indicates that supply is expected to remain below demand over the next three years, despite capacity increases among U.S. and Chinese wafer and laser manufacturers.

Citi also opened a 90-day upside Catalyst Watch on Lumentum ahead of the company's June-quarter earnings report and the ECOC conference in September 2026. The analyst cited expectations that Lumentum will address pricing dynamics, its co-packaged optics roadmap, and technology positioning at both events.

Shares of Lumentum closed at $752.00 prior to the note's publication.