Lumentum price target raised to $70 from $55 at Raymond James

Raymond James raised the firm’s price target on Lumentum to $70 from $55 and keeps an Outperform rating on the shares. The firm sees risk to its prior December quarter Datacom assumptions following the ECOC trade show, noting that Datacom still contributes the most growth and that Lumentum participates through sales of lasers and its own transceivers with a broadening customer base. The firm sees Telecom staging a recovery, but its model shows it only reaching two-thirds of the quarterly peak revenue, while Industrial tech should see a gradual recovery to $50M of quarterly industrial laser sales with the remainder depressed, the analyst tells investors in a research note.