STOCKS | Raymond James Says Buy the Dip in Lumentum After 18.5% Drop

Lumentum shares plunged more than 18.5% on Monday after Marvell announced an acquisition deal. According to Sina Finance, Raymond James called the sell-off an overreaction, upgraded Lumentum from Outperform to Strong Buy, and raised its price target to $1,328, implying 94% upside from Monday’s close. Analyst Simon Leopold said Lumentum’s rationale was that combining the companies would significantly expand their total addressable market and give the business in the merged company access to the technology and tools needed to win more design orders, differentiate products, and achieve higher margins. Leopold also said joint development could shorten time to market, adding that rapid AI hardware iteration requires deep co-design for long-term success and that high-speed connectivity is foundational to next-generation large-scale computing. Lumentum shares rebounded 1.7% in early trading on Tuesday.