Lumentum (LITE) Stock at $1,085: Bull $1,400, Bear $920…
By Tobi Opeyemi Amure
AI summary of the source article
Lumentum shares reached an all-time high of $1,085.42 following an 11.8 percent two-day rally spurred by analyst initiations and AI infrastructure tailwinds. Revenue for fiscal Q4 reached $1.01 billion, up 109.3 percent year-over-year, while the company guided fiscal Q1 2027 revenue between $1.225 billion and $1.275 billion. Sanford C. Bernstein initiated coverage with an Outperform rating and a $1,220 target, while Citi holds the Street high at $1,400. However, the stock now trades above the consensus target of $1,073.25, with valuation resting on whether earnings double by fiscal 2028 amid potential US scrutiny of Chinese optical transceivers.
Why it matters
Optical and networking suppliers are seen as structural winners in the AI infrastructure buildout as data centers shift toward higher-speed switches. Additionally, potential US regulatory action on Chinese-made optical modules could tighten market supply for Western manufacturers.
Key facts
- Lumentum stock closed at $1,085.42 after gaining 11.8 percent across two trading sessions.
- Fiscal Q4 revenue rose 109.3 percent year-over-year to $1.01 billion with non-GAAP EPS of $3.23.
- Analyst consensus sits at Moderate Buy with an average price target of $1,073.25, below the latest closing price.