A Glimpse Into The Expert Outlook On Lumentum Holdings Through 11 Analysts

11 analysts have shared their evaluations of Lumentum Holdings LITE during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

In the assessment of 12-month price targets, analysts unveil insights for Lumentum Holdings, presenting an average target of $96.36, a high estimate of $125.00, and a low estimate of $70.00. Witnessing a positive shift, the current average has risen by 6.75% from the previous average price target of $90.27.

Interpreting Analyst Ratings: A Closer Look

A comprehensive examination of how financial experts perceive Lumentum Holdings is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Lumentum Holdings. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Lumentum Holdings compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Lumentum Holdings's stock. This examination reveals shifts in analysts' expectations over time.

Capture valuable insights into Lumentum Holdings's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Lumentum Holdings analyst ratings.

Unveiling the Story Behind Lumentum Holdings

Lumentum Holdings Inc is a California-based technology firm. The company provides two types of optical and photonic products: optical components that are used in telecommunications networking equipment, and commercial lasers for manufacturing, inspection, and life-science lab uses. Its segments are Optical Communications and Commercial Lasers. The firm is also expanding into new optical applications, such as 3-D sensing laser diode for consumer electronics. It generates maximum revenue from the OpComms segment. The OpComms segment products include a wide range of components, modules, and subsystems to support customers including carrier networks for access (local), metro (intracity), long-haul, and submarine (undersea) applications.

Understanding the Numbers: Lumentum Holdings's Finances

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Lumentum Holdings's remarkable performance in 3 months is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 9.65%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Lumentum Holdings's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -15.14%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Lumentum Holdings's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -6.89%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Lumentum Holdings's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.53%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Lumentum Holdings's debt-to-equity ratio stands notably higher than the industry average, reaching 2.99. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.