Deep Dive Into Lumentum Holdings Stock: Analyst Perspectives (10 Ratings)

Lumentum Holdings LITE underwent analysis by 10 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $89.8, a high estimate of $110.00, and a low estimate of $70.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 1.1%.

Decoding Analyst Ratings: A Detailed Look

The standing of Lumentum Holdings among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|-------------------------|---------------|---------------|--------------------|--------------------| |Samik Chatterjee |JP Morgan |Lowers |Overweight | $73.00|$105.00 | |Simon Leopold |Raymond James |Lowers |Strong Buy | $82.00|$96.00 | |Dave Kang |B. Riley Securities |Raises |Neutral | $75.00|$62.00 | |Simon Leopold |Raymond James |Raises |Outperform | $96.00|$94.00 | |Ruben Roy |Stifel |Raises |Buy | $105.00|$95.00 | |David Vogt |UBS |Raises |Neutral | $96.00|$93.00 | |Mike Genovese |Rosenblatt |Maintains |Buy | $110.00|$110.00 | |Tim Savageaux |Northland Capital Markets|Raises |Market Perform | $70.00|$60.00 | |Ryan Koontz |Needham |Maintains |Buy | $110.00|$110.00 | |Meta Marshall |Morgan Stanley |Lowers |Equal-Weight | $81.00|$83.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Lumentum Holdings. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Lumentum Holdings compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Lumentum Holdings's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Lumentum Holdings's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Lumentum Holdings analyst ratings.

About 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.

Lumentum Holdings: Financial Performance Dissected

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Revenue Growth: Lumentum Holdings's remarkable performance in 3M 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 lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -15.14%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -6.89%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Lumentum Holdings's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -1.53%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 2.99, caution is advised due to increased financial risk.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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