Evercore ISI initiates coverage on Lumentum with outperform rating and $1,100 target

Evercore ISI has picked up coverage of Lumentum Holdings with an Outperform rating and a price target of $1,100, adding another bullish voice to a chorus of analysts betting that the optical components maker is one of the clearest beneficiaries of the AI infrastructure buildout. With the stock trading around $895 in late August 2026, the $1,100 target implies roughly 23% upside. That’s a meaningful gap, but it lands squarely within the range where most of Wall Street has already planted its flag. The numbers behind the optimism Lumentum’s fiscal Q4 2026 results explain why analysts are lining up. The company posted net revenues of $1.01B for the quarter, a figure that would have seemed ambitious just a couple of years ago for a company that makes photonic components and laser technology. More striking than the backward-looking results is where Lumentum expects to go next. The company’s Q1 FY2027 revenue guidance sits between $1.225B and $1.275B, representing a sequential jump of more than 20% from an already record quarter. Margins are expanding alongside revenue. Lumentum expects non-GAAP operating margins of 39.5% to 40.5% in the current quarter. Across roughly 21 firms covering ...