Barclays upgrades Lumentum to overweight, keeps $1,000 target

According to CNBC, Barclays upgraded Lumentum Holdings to overweight from equal weight and kept its $1,000 price target, which implies 36% upside from Friday's close. Analyst Tom O'Malley said the stock remains attractive after a recent pullback, with fundamentals still strong for transceiver and laser demand, and he expects earnings-season updates on the company and the semiconductor industry to help the shares recover. He also said LITE has underperformed the iShares Semiconductor ETF (SOXX) by about 40% over the past three months, while multiple compression reflects investor concern that scale-up co-packaged optics could be delayed. Lumentum shares are up nearly 100% year to date but have fallen 18% over the past three months. The company is scheduled to report fiscal fourth-quarter earnings on Aug. 11, and LSEG data show 22 of the 27 analysts covering the stock rate it buy or strong buy.