JPMorgan analyst Samik Chatterjee upgraded Lumentum to Overweight from Neutral with a price target of $60, up from $54. The stock’s current valuation appears to price in "more headwinds than realistic," even though there is further risk of downside to estimates, the analyst tells investors in a research note. The firm believes upside to earnings estimates is likely despite lower revenues as Lumentum deploys about $500M in buybacks by mid-2025. It reduced revenue estimates further for potential share loss to Sony in 3D sensing, but the firm’s earnings estimate for fiscal 2025 rises on account of a higher likelihood of the company utilizing the flexibility on its balance sheet.
Published first on TheFly
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