Lumentum upgraded to Buy at Craig-Hallum with telecom set to bottom ‘soon’

As previously reported, Craig-Hallum analyst Richard Shannon upgraded Lumentum to Buy from Hold with a price target of $65, up from $48, based on the view that the telecom market, where Lumentum has “strong exposure,” is poised to bottom out soon and that the company’s Cloud Light acquisition increases exposure to the high-growth cloud/AI datacom market. Given the small-cap rally of the past several weeks and prospect for lower interest rates that drives capital towards higher beta names, the firm now sees it as less likely that the stock will see another substantial dip that would provide a better entry point, the analyst added.