Evercore ISI initiated coverage on Lumentum Holdings (LITE) with an Outperform rating. The firm set a price target of $1,100.00 for the stock.
Analysts identified Lumentum as a key provider of optical interconnections for AI infrastructure. This market segment is currently experiencing rapid growth.
Evercore highlighted Lumentum's specialized indium phosphide lasers as a significant competitive advantage. Demand for these products is projected to see substantial compound growth through 2030.
The firm projects significant earnings growth by fiscal 2028. Evercore also expects gross margin expansion by fiscal 2028.