Stifel Nicolaus raised its price target for Lumentum Holdings (NASDAQ:LITE) to $1,232 from $1,100, reiterating a "buy" rating. The new target suggests a potential upside of 13.5% from the company's previous closing price.
This positive revision follows indications of robust and accelerating demand for Lumentum's high-power lasers. Major clients in the artificial intelligence sector, including NVIDIA, drive this demand.
Management meetings at the European Conference on Optical Communication bolstered Stifel's confidence. These meetings highlighted that near-term demand is outpacing Lumentum's current supply capacity.