Lumentum price target lowered to $55 from $62 at Stifel

Stifel analyst Ruben Roy lowered the firm’s price target on Lumentum to $55 from $62 and keeps a Buy rating on the shares. Lumentum exited a challenging FY23 with 3% revenue growth and a 25% decline in EPS, and inventory headwinds that impacted 2H23 are expected to continue through the end of the calendar year, the analyst tells investors in a research note. Lumentum should emerge as a primary beneficiary of DCI upgrades as current headwinds ease, the firm contends.