Lumentum stock surges after Goldman Sachs upgrade
Shares of optoelectronics company Lumentum Holdings Inc. are up nearly 4% in premarket trading after Goldman Sachs analyst Rod Hall upgraded the stock to buy from neutral. "We note that Lumentum's 3D sensing business is robust and gaining pace and the Lasers business is seeing strong demand," Hall wrote. "We further note that our detailed 3D sensing modeling shows upside vs. consensus in CY'19 as we believe consensus is underestimating the iPad/Android opportunity as well as average module maker yields." He said that Lumetum's telecom business is recovering, as the company counts Ciena Corp., Huawei, and Cisco Systems Inc. as major customers. Those players should have strong demand for Lumentum's technology, according to Hall, who has a $79 price target on the stock. Shares of rival Finisar Corp. are down 1.9% in premarket trading. Lumentum's stock is down 9.6% over the past 12 months, while the S&P 500 has gained 14%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.