Analysts Are Upping Their Price Targets on Lumentum Stock. Here's Why.

Analysts are boosting their price targets on Lumentum stock due to its strategic pivot towards AI-driven growth. The company's Q4 FY2026 results exceeded expectations, with revenue and earnings surpassing Wall Street estimates. This growth is attributed to the increasing demand for optical components used in AI data centers. Following the report, Lumentum's shares surged 13.6% in the subsequent trading session.

Analysts, such as TD Cowen, have raised their price targets, citing strong execution and consistent demand. Despite some concerns about the broader business cycle, analysts maintain a positive outlook, with an average price target of $1,111.41, indicating a potential 21.5% upside from current levels.