These are top 10 stocks traded on the Robinhood UK platform in July
JPMorgan raised its price target on Lumentum (NASDAQ:LITE) stock to $100.00 from $87.00 on Thursday, while maintaining an Overweight rating on the optical components manufacturer. The stock, currently trading at $82.36, has shown remarkable strength with a 75.57% return over the past year.
The firm cited stronger telecom data center interconnect demand and a faster ramp in datacom products as key drivers for the upward revision. JPMorgan now expects Lumentum to reach $600 million in quarterly revenue by the fourth fiscal quarter of 2026. This optimism is shared broadly, with InvestingPro data showing 11 analysts recently revising their earnings estimates upward for the upcoming period.
The bank increased its earnings forecasts for Lumentum, projecting $4.20 per share for fiscal year 2026, up from its previous estimate of $3.95, and $5.90 for fiscal year 2027, revised from $5.55 previously.
JPMorgan highlighted Lumentum’s leadership position in laser content, which positions the company to capitalize on scale-out and scale-up co-packaged optics opportunities in the coming years.
The new December 2025 price target reflects a higher target earnings multiple of 20x applied to Lumentum’s projected calendar year 2026 earnings power, according to the research note. With a market capitalization of $5.72 billion and trading at 6.5 times book value, investors seeking deeper insights can access comprehensive valuation analysis through InvestingPro’s detailed research reports.
In other recent news, Lumentum has released updated guidance for the fourth quarter of fiscal 2025, significantly impacting its revenue and earnings outlook. The company now anticipates revenues between $465 million and $475 million, an increase from the previous range, and expects to achieve a $500 million revenue target by the first quarter of fiscal 2026, a quarter earlier than initially projected. Both Needham and Rosenblatt analysts have raised their price targets for Lumentum stock to $105, maintaining a Buy rating, citing strong revenue visibility and improved margins, respectively. Stifel analysts also raised their price target to $100, highlighting Lumentum’s accelerated timeline for reaching its revenue goals and its role in the emerging AI ecosystem. Meanwhile, UBS has maintained a Neutral rating with a price target of $78, noting that the market may have already anticipated the revenue upside. Lumentum’s management attributes the positive outlook to broad-based strength across its core businesses and advancements in its product mix. The company is benefiting from improved execution and an acceleration in compute infrastructure developments. These recent developments reflect growing confidence in Lumentum’s business trajectory and its strategic focus on enhancing profitability.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.