Lumentum price target lowered to $51.50 from $64 at Raymond James

Raymond James analyst Simon Leopold lowered the firm’s price target on Lumentum (LITE) to $51.50 from $64 to reflect more significant near-term challenges and less market share in 3D sensing, while keeping an Outperform rating on the shares. The firm notes that Q4 results were largely in line with guidance, which already contemplated macro and inventory related weakness. The outlook suggests further deterioration despite a burgeoning AI-related opportunity in datacom, Raymond James adds. Despite limited exposure to datacom, the firm believes Lumentum’s strong EMLs, CW, and VCSEL Laser technology creates an opportunity for further penetration, as evidenced by its Nvidia (NVDA) partnership.