Lumentum downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Samik Chatterjee downgraded Lumentum to Neutral from Overweight with a price target of $64, down from $83. The company is facing headwinds associated with its datacom products, which are challenged by inventory digestion from a key customer as well potential downside risk to commercial lasers aligned to broader industrial and the semiconductor equipment cycle, Chatterjee tells investors in a research note. He is confident in Lumentum’s telecom growth, but says headwinds in its other businesses will limit a re-rating of the shares.