JPMorgan Points Out Lumentum Holdings’ (LITE) “Scale-Across” and “Multi-Rail” Opportunities

Lumentum Holdings Inc. (NASDAQ:LITE) is 1 of the high abbreviated involvement stocks to bargain close now. On December 5, JPMorgan expert Samik Chatterjee raised the firm’s terms people connected Lumentum to $350 from $235, portion keeping an Overweight standing connected the shares. This sentiment was posted arsenic JPMorgan broadly accrued its fiscal estimates for optical companies, citing caller opportunities successful scale-across and multi-rail. The steadfast explained that the other marketplace imaginable from scale-across and the caller telecom products supporting multi-rail infrastructure successful long-haul and metro networks make a stronger outlook.

Earlier, for FQ1 2026, Lumentum Holdings announced the highest quarterly gross successful the company’s history. Total gross reached $533.8 million, which marked a 58% year-over-year increase. AI and unreality infrastructure relationship for implicit 60% of its revenue. Segment gross breakdown showed components gross astatine $379.2 million, increasing 18% sequentially and 64% year-over-year. Systems gross was $154.6 million, which declined 4% sequentially but was inactive up 47% year-over-year.

However, contempt the growth, Lumentum faces a supply-demand imbalance, with request outstripping proviso by 25% to 30%. The institution is allocating proviso and utilizing this imbalance to instrumentality targeted terms increases, with broader pricing adjustments anticipated successful 2026. For FQ2, Lumentum expects full gross betwixt $630 and $670 million. The institution besides expressed accrued assurance successful the Optical Circuit Switch market, aiming to scope $100 cardinal successful quarterly gross by December 2026.

Lumentum Holdings Inc. (NASDAQ:LITE) manufactures and sells optical and photonic products successful the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. It operates done 2 segments: Cloud & Networking and Industrial Tech.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.