Lumentum Holdings Inc Stock Forecast:
The average target price for Lumentum Holdings Inc is USD 69.98 over the next 12 months, based on the forecasts of 21 analysts. The average rating for the stock is Buy. Stock Target Advisor’s own analysis of Lumentum Holdings Inc is Slightly Bullish, with 7 positive signals and 5 negative signals. As of the last closing, the stock price was USD 51.31, which represents a decrease of -1.78% over the past week, -4.82% over the past month, and -44.87% over the last year.
Analysts Coverage Change:
- Craig-Hallum Capital Group Downgraded Lumentum Holdings Inc with a “Hold” rating.
- Raymond James lowers the target price for Lumentum Holdings to $73 from $84.
- Needham & Company maintains a”Buy” rating and lowers the target price to $59 from $72.
- Bank of America Merrill Lynch lowers the target price to $56 from $70.
Positive Fundamentals:
- Lumentum Holdings has a high market capitalization and is one of the largest entities in its sector, making it more stable.
- The stock has superior risk-adjusted returns compared to its sector peers over a holding period of at least 12 months, placing it in the top quartile.
- The stock has low volatility and stable annual returns compared to its sector peers over a holding period of at least 12 months, placing it in the top quartile.
- The company has superior capital utilization with better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.
- The company had positive total cash flow and positive total free cash flow in the most recent four quarters.
- The stock has shown top quartile earnings growth in the previous 5 years compared to its sector.
Negative Fundamentals:
- The stock is overpriced compared to earnings
- The stock is overpriced compared to book value
- The stock is overpriced on cashflow basis
- Highly leveraged
- Overpriced on free cash flow basis
FA Score (Fundamental Analysis):
The fundamental analysis of Lumentum Holdings Inc. is “Slightly Bullish” with a FA score of 5.8 out of 10, where 0 is very bearish and 10 is very bullish.
