Lumentum Jumps 8% as StoneX Starts Coverage With $1,200 Target; Applied Optoelectronics and Coherent Climb 6%
StoneX’s $1,200 target on Lumentum sparked an 8% rally and lifted Coherent and Applied Optoelectronics as investors bet on AI infrastructure demand.
- StoneX initiated coverage of Lumentum Holdings with a Buy rating and a $1,200 price target, sparking an 8% rally in Lumentum shares and pulling Coherent and Applied Optoelectronics each 6% higher.
- The AI optics trade powered significant market gains this year, but a sudden shift in fund manager sentiment is testing that momentum as warnings from chip giants regarding AI funding constraints have sent optical networking stocks into a sharp sector-wide slide.
- Jefferies adopted a bullish perspective on Lumentum on October 20, raising its price target to $1,250, though the stock trades at 54.1 times operating cash flow versus its five-year average multiple of 15.4.
- Individual performance diverges across the sector; shares of Applied Optoelectronics dropped 9% to roughly $154 on Friday, while Coherent declined 8% to about $346, despite StoneX projecting 59% upside for Lumentum.
- Investors await Lumentum's first-quarter 2027 guidance projecting revenue between $1.23 billion and $1.28 billion, though analysts suggest a cautious approach; one bad quarter could unwind months of gains despite the order book extending into 2029.
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BizTocLumentum Jumps 8% as StoneX Starts Coverage With $1,200 Target; Applied Optoelectronics and Coherent Climb 6%
A single Buy rating from a firm new to the name sent optical networking stocks surging well past the broader market, raising a pointed question about whether this is a genuine sector rebound or just a short-lived bounce after a brutal month.
Lumentum Stock Rises 8% as StoneX Sets $1,200 Target Ahead… – Your Capital Minds
Lumentum shares rose 8.19% to $818.10 on Monday after StoneX initiated coverage with a Buy rating and a $1,200 price target. The optical networking stock traded as high as $840.47 during the session, according to market data. The call renewed attention on a sector tied to data-center investment, but Lumentum remains below its reported 52-week high of $1,143, and its next quarterly results are due on 5 November. The move was not limited to Lument…
Lumentum Stock Jumps 8% on StoneX $1,200 Target
Lumentum shares rose 8.19% to $818.10 on Monday after StoneX initiated coverage with a Buy rating and a $1,200 price target. The optical networking stock traded as high as $840.47 during the session, according to market data. The call renewed attention on a sector tied to data-center investment, but Lumentum remains below its reported 52-week high of $1,143, and its next quarterly results are due on 5 November. The move was not limited to Lument…
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