Lumentum Holdings Receives a Hold Rating from B.Riley Financial Analyst Dave Kang

Lumentum Holdings (LITE) received a Hold rating from B.Riley Financial analyst Dave Kang, with a price target of $83.00. Kang is a top 100 analyst with a 23.7% average return and 66.24% success rate. LITE also received a Hold from Bank of America Securities and a Buy from Rosenblatt Securities. The company has a market cap of $8.3B and P/E ratio of 512.90.

Lumentum Holdings Inc. (LITE) reported a strong fourth-quarter fiscal 2025, with revenue reaching $480.7 million, up 13% from the prior quarter and 56% from the same period last year [1]. The company's earnings per diluted share (EPS) of $0.88 exceeded analyst expectations by $0.08, while net profit climbed to $213.3 million, reversing a loss of $44.1 million in the prior quarter [1]. Operating margin improved to 15%, up from 10.8% in the previous quarter and a negative 5.1% in the fourth quarter of fiscal 2024 [1].

The Cloud & Networking segment drove revenue growth, reaching $424.1 million, a 16% increase sequentially and a 67% gain year over year, representing 88% of total quarterly revenue [1]. Industrial Technology revenue was $56.6 million, down 6% from the prior quarter but up 6% from the previous year [1].

For the full fiscal year 2025, Lumentum reported revenue of $1.65 billion, a 21% increase from fiscal 2024, with a net profit of $25.9 million and an operating margin of 9.7% [1]. The company's cash, cash equivalents, and short-term investments totaled $877.1 million at quarter end [1].

Looking ahead, Lumentum projects first-quarter fiscal 2026 revenue between $510 million and $540 million, with an operating margin between 16% and 17.5%, and diluted EPS in the range of $0.95 to $1.1 [1].

Analysts have responded to Lumentum's strong Q4 performance with mixed ratings. Raymond James analyst Simon Leopold maintained a Strong Buy rating and boosted the price target from $125 to $145 [1]. B. Riley Securities analyst Dave Kang kept a Neutral stance while increasing the price target from $73 to $83 [1]. Stifel analyst Ruben Roy maintained a Buy rating and raised the price target from $100 to $132 [1]. BofA Securities analyst Vivek Arya upgraded the stock from Underperform to Neutral, lifting the price target from $78 to $135 [1]. Needham analyst Ryan Koontz reiterated a Buy rating and increased the price target from $135 to $145 [1].

Lumentum has a market cap of $8.3 billion and a P/E ratio of 512.90 [2]. The company faces challenges in its Industrial Technology segment, including supply constraints in narrow linewidth lasers, and significant non-productive inventory (NPI) costs impacting margins [2]. Despite these challenges, Lumentum is well-positioned to capture value from the AI infrastructure market with technologies like 200GB EMLs and 1.6T transceivers [2].

References:
[1] https://anachart.com/market-update/august-13th-2025/
[2] https://finance.yahoo.com/news/lumentum-holdings-inc-lite-q4-071337400.html