Lumentum price target raised to $40 from $38 at Barclays

Barclays analyst Tom O’Malley raised the firm’s price target on Lumentum (LITE) to $40 from $38 and keeps an Underweight rating on the shares. The reaction coming out of the earnings call will be positivity around a potential new 800G transceiver customer, which many will assume is Nvidia (NVDA), the analyst tells investors in a research note. The firm, however, thinks the language was a bit loose on “award” as Lumentum isn’t even qualified yet, let alone recognizing revenue before mid-next year. It admits though that its Underweight thesis will be tougher from here “as you are essentially fighting a ghost on a qualification you won’t have additional details on until next year.”