Lumentum stock price target raised to $225 from $150 at Rosenblatt

Investing.com - Rosenblatt raised its price target on Lumentum (NASDAQ:LITE) to $225 from $150 while maintaining a Buy rating on the optical component maker’s stock. The stock, currently trading near its 52-week high of $173.38, has delivered an impressive 175% return over the past year. According to InvestingPro data, analysts maintain a strong buy consensus on LITE.

The firm reiterated Lumentum as its "best idea for 2025" after previously naming it as a top pick for both the first and second half of the year.

Rosenblatt cited "tremendous near-term momentum" for the company, primarily driven by increasing supply and strong demand for 200G EML lasers used in 1.6T and certain 800G Data Center transceivers.

The firm also highlighted strong demand for narrow linewidth tunable lasers used in ZR and other coherent DCI and Telecom modules as contributing factors to its bullish outlook.

Rosenblatt noted growing midterm momentum as products like Optical Circuit Switch and ultra-high power lasers for Co-Packaged Optics are building "nine figure order books" while shipping in smaller initial volumes.

In other recent news, Lumentum Holdings Inc. has announced a $1.1 billion offering of convertible senior notes due in 2032, intended for qualified institutional buyers. The company has also provided initial purchasers with a 13-day option to acquire an additional $165 million in notes. These notes will bear an interest rate of 0.375% per year, payable semi-annually. In related developments, BofA Securities has upgraded Lumentum’s stock rating from Underperform to Neutral, citing potential revenue growth. The firm projects that Lumentum may achieve its medium-term revenue target of $600 million per quarter sooner than previously anticipated.

Additionally, Stifel has raised its price target for Lumentum to $132 from $100, maintaining a Buy rating. This adjustment follows Lumentum’s fourth-quarter fiscal 2026 results, which exceeded both analyst expectations and the company’s revised guidance. The strong performance was attributed to robust demand for datacom components, particularly electro-absorption modulated laser shipments. These developments highlight ongoing investor interest and activity surrounding Lumentum.

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