In a report released today, Tim Savageaux from Northland Securities maintained a Buy rating on Lumentum Holdings (LITE), with a price target of $71.25. The company’s shares opened today at $60.
Savageaux said:
“We maintain our $71.25 PT reflecting 15X our reduced FY20 ests of $4.73, which reflects some of the Huawei/Telecom and 3DS upside we had anticipated in FQ1 being pulled into FQ419, a conservative view of 3DS revenue relative to peers and suppliers despite a strong ramp anticipated for FQ119, and the wind down of $30M in telecom and datacom modules revs throughout the year offset by higher GMs from both mix and synergies. LITE reported FQ419 revs of $405M, well above our $385M ests (we note an error in FY19 revs in our last note which were $1,544M) reflecting higher 3DS revs ($15M) and lower Huawei related reductions in Telecom ($10M). NG EPS of $0.92 was also well above our $0.76 on top line upside, in line GMs and slightly lower opex.”
According to TipRanks.com, Savageaux is a 3-star analyst with an average return of 3.1% and a 51.2% success rate. Savageaux covers the Consumer Goods sector, focusing on stocks such as MACOM Technology Solutions Holdings Inc, DASAN Zhone Solutions Inc, and Applied Optoelectronics.
Currently, the analyst consensus on Lumentum Holdings is a Strong Buy with an average price target of $67.48.
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The company has a one-year high of $69.95 and a one-year low of $37. Currently, Lumentum Holdings has an average volume of 1.66M.
Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock.
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Lumentum Holdings, Inc. engages in the manufacture of optical and photonic products enabling optical networking and commercial laser. It operates through the Optical Communications (OpComms) and Commercial Lasers business segments. The OpComms segment includes modules and subsystems to support and maintain customers in the Telecom and Datacom markets.
