Needham says ‘time to buy’ Lumentum on expected upturn

Needham analyst Alex Henderson keeps a Buy rating and $59 price target on Lumentum but notes that it is “time to buy” the stock. Business has hit a trough and an upturn is expected to follow in 6 months, the analyst tells investors in a research note. Data Comm has troughed already and is expected to be sequentially up, Telecom is in the troughing process with weakness in Q3 and again in Q4 before some visibility developing for recovery into the March quarter, and 3D Sensing declines continuing but becoming a much smaller drag as the business shrinks, Needham added.