Five Analysts Cut Lumentum Price Targets; B. Riley Downgrades to Neutral

Five analysts cut their price targets on Lumentum (Nasdaq: LITE) on Tuesday, and B. Riley Securities downgraded the stock to neutral from buy.

Lumentum agreed on Monday to be acquired by Marvell in an all-stock deal, according to an 8-K filed that day. The rating and target actions came the day after that filing, Lumentum 8-K.

Needham maintained its buy rating and cut its target to $800 from $1,040 before the open. Rosenblatt kept its buy rating and lowered its target to $900 from $1,300 before the open. Susquehanna kept its positive rating and cut its target to $950 from $1,100 before the open. TD Cowen kept its hold rating and lowered its target to $685 from $820 during the session. B. Riley Securities moved to neutral from buy and cut its target to $770 from $1,142 during the session.

Price action

Lumentum closed at $684.40 on Monday, after falling 37.3% over the 20 sessions to that close. On Tuesday the stock fell 0.6% to close at $680.16, while the S&P 500 ETF rose 0.3%.

Where coverage stands

Of the 19 firms that rated the stock in the past year, 15 rated it positive and four rated it neutral before Tuesday, with none negative. The median target among those firms was $1,140, ranging from $526 to $1,400. The five new targets range from $685 to $950.

For scale, Lumentum reported revenue of $3.01 billion for the fiscal year ended June 27, up 83% from a year earlier. It held $2.74 billion in cash and investments as of that date.