New York, Jan 30, 2026, 14:54 EST — Regular session
- Lumentum shares climbed roughly 5% in afternoon trading, recovering after a volatile start to the session
- Morgan Stanley raised its price target but maintained a neutral “Equal Weight” rating
- Attention now turns to earnings on Feb. 3 and a March investor briefing at OFC in Los Angeles
Lumentum Holdings (LITE.O) shares climbed 4.7% to $399.51 in Friday afternoon trading following a price target increase from Morgan Stanley. The optical components maker’s stock had surged as much as 17% earlier, swinging between $395.45 and $448.00. (GuruFocus)
The announcement comes ahead of Lumentum’s fiscal second-quarter earnings, set for Feb. 3. Investors are closely watching for signs of demand linked to data-center expansions. The company plans to release results after market close and follow up with a webcast that same day. (Lumentum Investor Relations)
Morgan Stanley maintained its “Equal Weight” rating — a neutral stance indicating the stock is expected to track peers closely — despite raising its price target. In a note previewing the update, the bank pointed to margins as the key uncertainty, while noting that demand remains robust and the company is still “largely capacity constrained.” (TipRanks)
The company’s previous forecast projected second-quarter net revenue between $630 million and $670 million, with non-GAAP diluted earnings per share ranging from $1.30 to $1.50. Non-GAAP excludes items like stock-based compensation and restructuring costs; earnings per share represents profit divided by shares outstanding. CEO Michael Hurlston said the firm is well-positioned to back “the rapid expansion of AI compute.” (SEC)
Separately, Lumentum announced it will hold an investor briefing at the Optical Fiber Communication Conference and Exhibition—OFC—on March 17 in Los Angeles. The company plans to offer the session both in person and via webcast, with a replay and presentation slides available afterward. (Lumentum Investor Relations)
Morgan Stanley’s fresh $350 target comes in under Friday’s closing price, highlighting just how far the stock has priced in optimism ahead of next week’s earnings. The real question now: demand looks strong, but can margins and supply keep pace?
Optical and networking stocks showed mixed action on the day. Coherent gained roughly 1%, Applied Optoelectronics surged over 12%, and Ciena slipped slightly.
Still, the stock’s intraday swings highlight how fast positioning can turn when traders pile into one catalyst. A softer margin print, slower shipments, or cautious guidance can hurt, even if headline revenue stays steady.
Tuesday’s earnings release and management call will be the next major test, with investors focused on any shifts in the revenue guidance, margin trajectory, and capacity updates. The following key event is the OFC briefing scheduled for March 17.
