Rosenblatt Securities Sticks to Its Buy Rating for Lumentum Holdings

By Carrie Williams

In a report released yesterday, Jun Zhang from Rosenblatt Securities reiterated a Buy rating on Lumentum Holdings (NASDAQ: LITE), with a price target of $80. The company’s shares closed yesterday at $60.60.

Zhang noted:

“We believe the selloff was an overreaction to the news and believe that Lumentum remains the best positioned name in the 3D sensing space. We believe that 3D sensing momentum is likely to occur throughout the balance of this year and should allow Apple (AAPL: Buy) to create new applications and improve performance in its new iPhones and iPad Pros. We view this as a cata- lyst for Lumentum. We reiterate our buy rating and $80 price target. Lumentum’s telecom business should start to see some ramping from ROADM in China in 3Q18. We believe this will help the company’s China business re- gain momentum and return the segment to sequential growth. We believe the company’s CWDM4 shipments to Amazon (AMZN: NR) should ramp sequen- tially in the third quarter, driving new growth in the telecom business. U.S.”

According to, Zhang is a 1-star analyst with an average return of -2.9% and a 56.8% success rate. Zhang covers the Consumer Goods sector, focusing on stocks such as Himax Technologies, Synaptics Inc, and NeoPhotonics.

Lumentum Holdings has an analyst consensus of Strong Buy, with a price target consensus of $81.77.

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Based on Lumentum Holdings’ latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $2.7 million. In comparison, last year the company had a GAAP net loss of $56 million.

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Lumentum Holdings, Inc. engages in manufacturing of optical and photonic products enabling optical networking and commercial laser. Its components and subsystems are part of telecom, enterprise, and data center network. The company operates in two segments: Optical Communications and Commercial Lasers.