Lumentum price target lowered to $48 from $53 at Craig-Hallum

Craig-Hallum analyst Richard Shannon lowered the firm’s price target on Lumentum to $48 from $53 and keeps a Hold rating on the shares. Lumentum’s announcement to purchase Cloud Light, a datacom xvcr maker, for $750M, is a strategic change for Lumentum, as it moves into the xcvr space, the firm says. Craig-Hallum views the acquisition as reasonable, but says execution will be critical.