Simon Leopold, an analyst from Raymond James, maintained the Buy rating on Lumentum Holdings. The associated price target was raised to $220.00.
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Simon Leopold has given his Buy rating due to a combination of factors that highlight Lumentum Holdings’ promising future. He acknowledges the company’s potential for growth, particularly with the expectation that Lumentum will reach significant sales milestones earlier than anticipated. This optimism is supported by the anticipated growth in the optical total addressable market, which is projected to expand significantly over the next few years.
Additionally, Leopold points to the company’s strong operating margins and the strategic shift towards higher-margin products, such as laser chips, as key drivers for the positive outlook. The valuation, while higher than historical averages, is justified by the multi-year secular trend in artificial intelligence and the potential for upward revisions in estimates. These factors, combined with Lumentum’s robust market position and improved industry structure, underpin the Buy rating.
According to TipRanks, Leopold is a 5-star analyst with an average return of 14.0% and a 60.42% success rate. Leopold covers the Technology sector, focusing on stocks such as Dell Technologies, Pure Storage, and Hewlett Packard Enterprise.
In another report released on October 22, Susquehanna also maintained a Buy rating on the stock with a $190.00 price target.