Research Alert: CFRA Maintains Buy Opinion On Shares Of Lumentum Holdings Inc.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target by $210 to $1,000, applying an EV/EBITDA multiple of 39.1x to our FY 27 estimate, a premium to its five-year historical average of 31.9x. We increase our FY 26 EPS estimate by $0.19 to $7.79 and raise FY 27's by $1.44 to $15.84. LITE has developed a long-standing partnership with NVIDIA Corporation, resulting in a $2B investment and a multibillion-dollar purchase commitment, which highlights confidence in LITE's technology and future prospects. The current AI cycle is continually intensifying, leading to exponential increases in demand for optics vendors like LITE. This has required the company to rapidly expand capacity and retool its operations to meet hyperscaler time scales and volumes, pushing the company to scale faster and more aggressively than before. LITE has expanded its manufacturing capacity, quadrupling supply in its existing indium phosphide fabs over the past 12 to 18 months, and plans to further increase capacity by 20% over the next two quarters.
