Lumentum (LITE) PT Raised to $1,100 at Stifel Ahead of Earnings

Stifel analyst Ruben Roy raised the price target on Lumentum (NASDAQ: LITE) to $1,100.00 (from $800.00) while maintaining a Buy rating.

The analyst commented, "Heading into F3Q26 prints for COHR and LITE this week and CIEN's F2Q26 print (early-June), we remain Buyrated across all three optical networking names and are again raising estimates and target prices following the sub-sector run-up since OFC 2026 that, in our view, raised the bar on what the cycle can deliver. The combination of (i) hyperscaler CapEx accelerating (consensus for Big-5 is ~$705.2bn in CY26, +67.3% y/y) into a multiyear build-out, (ii) extended order visibility (12-18 months across the cohort), and (iii) supply-side scarcity at the upstream InP/EML/CW laser layer continues to support the framework that the AI infrastructure cycle is real, durable, and compounding. We continue to believe the cohort is more likely to deliver beat-and-raise prints into midCY26 than not, with multi-year upside levers (Hyper-Rail and DCOM expansion at CIEN; OCS and scale-up CPO at LITE; the 3-vector Scale-Out / Scale-Up / ScaleAcross framework at COHR) still to drive long-tailed accretion to revenue and margin contributions. Supply constraints and valuation remain swing factors and our preferred ordering on a 12-month view remains COHR first, CIEN second, LITE third, though all three carrying meaningful structural upside levers we expect to materialize through CY26-CY27."

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