Explore the latest developments concerning Lumentum (LITE) Stock.
Lumentum (LITE) Stock Looks Like A Bargain On Its Huge Run
Lumentum Holdings has delivered extremely strong multi year share gains, which puts a spotlight on whether the current US$818.10 price is still aligned with the cash the business can generate. With the focus on its cash flows and a Discounted Cash Flow (DCF) view available, the question is whether recent momentum has already pulled the valuation ahead of those fundamentals.
Over the past 3 years the stock has returned roughly 20 times an initial investment, which raises the stakes on whether the present valuation is still grounded in realistic cash flow assumptions.
The company's ability to translate its optical technology sales into reliable free cash flow, and how much reinvestment is needed to support that, can materially influence what its future stream of cash is worth today.
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Coherent Soars 6%, Lumentum Up 8% as StoneX Starts Both With Buy, Sees 103% Upside
Coherent (COHR) stock is up [6%] today and Lumentum (LITE) is up 8% after StoneX initiated coverage of both with Buy ratings before the open this morning.
StoneX’s $425 target on Coherent is 103% above Friday’s close. The firm says Coherent’s move to six-inch indium phosphide (InP) laser production underpins its earnings case. Its $1,200 Lumentum target is 59% above that stock’s Friday close, and StoneX says Lumentum holds “critical scarcity points” in high-speed InP lasers and cloud transceivers.
That’s welcome relief for Coherent, which dropped 19% in a week on worries about AI funding and its cash burn.
Six-inch wafers are the core of the bull case. Management says each one yields more than 4x the chips of a three-inch wafer at less than half the cost. It also expected to double its InP output capacity by the end of September, then more than double it again by the end of 2027.
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