Lumentum price target raised to $54 from $50 at Morgan Stanley

Morgan Stanley analyst Meta Marshall raised the firm’s price target on Lumentum to $54 from $50 and keeps an Equal Weight rating on the shares. Lumentum posted small upside in Q4 to the top and bottom line, highlighting a second major 800G win and some telco recovery, along with growing traction with other datacomm customers, the analyst tells investors in a research note. Management’s commentary gives the firm more confidence in the model, but valuation in combination with unanswered questions leaves the firm with its Equal Weight rating.