New York, January 23, 2026, 11:33 ET — Regular session underway
- Shares of Lumentum dipped roughly 4% in late morning trading, underperforming several of its networking rivals.
- Citi raised its price target to $450, joining Susquehanna and Stifel, which also bumped up their estimates.
- All eyes shift to Lumentum’s fiscal Q2 results, set to drop after the close on Feb. 3.
Lumentum Holdings shares dropped roughly 4% on Friday, trading near $340.18 late morning after dipping to $334.50 earlier. The slide comes amid a fresh round of broker target revisions for the optical components maker.
This matters because Lumentum has turned into a high-beta play on data-center spending for faster optical links—a trade that can swing sharply with shifting expectations. With earnings approaching, traders are treating price-target changes less like long-term forecasts and more as a gauge of how stretched near-term assumptions really are.
Citi stuck with its buy rating on Lumentum on Friday, lifting its price target sharply to $450 from $240. This follows several target hikes this month as analysts revise their 2026 demand forecasts. 1
On Thursday, Susquehanna analyst Christopher Rolland boosted his price target to $420 from $230 and maintained a positive rating. The firm anticipates results to come in “in-line to modest upside” this quarter, highlighting a “steadying upcycle” and expanding AI infrastructure supply chain. Autos, however, continue to be “somewhat challenged.” 2
On Thursday, Stifel bumped its price target to $400, up from $220, maintaining a buy rating. The firm pointed to a “step-function increase in networking intensity” driven by increasingly complex AI workloads, though it noted valuations are sitting at multi-year or historical peaks. 3
Peers also dipped. Coherent dropped roughly 2.6%, Applied Optoelectronics lost around 4.6%, and Ciena slipped by about 0.9%.
Lumentum, based in San Jose, California, creates photonics-based products for telecom, enterprise, and data-center networks. The company also markets commercial lasers for industrial uses. 4
The setup goes both ways. When valuations run high and targets shift rapidly, even a hint that cloud and networking demand is slowing—or that product ramps lag—can send the stock tumbling, despite the bigger picture remaining solid.
Lumentum is set to release its fiscal second-quarter 2026 results on Feb. 3, after the market close. A webcast will follow at 5:00 p.m. ET. Investors will focus closely on the company’s guidance and any updates about data-center optical demand and the end-market mix. 5
