sentiment
April 18, 2023
Trending News 🌥️
Lumentum Holdings ($NASDAQ:LITE) is a technology company specializing in optical and photonic products for a variety of markets including communications, consumer electronics, industrial, and medical. Recently, JP Morgan upgraded their stock, citing that Wall Street estimates were overly pessimistic and unjustified. They believed that the share price of Lumentum was too low compared to their estimated potential performance. The upgraded stock has had a positive effect on the sentiment surrounding the company.
This sentiment has been backed up by the fact that their sales and operating margins have risen in recent quarters, despite a decrease in demand for products due to the global economic slowdown. Overall, the JP Morgan upgrade of Lumentum Holdings has been good news for investors, as it has boosted the sentiment around the company and has seen its share price rise. With their strong financial performance despite a difficult economic environment, Lumentum Holdings looks poised to continue their success in the years to come.
Market Price
The JP Morgan analysts predicted demand for their products and services will be strong, and the outlook for the company’s future looks positive. As a result of the upgrade, LUMENTUM HOLDINGS stock opened at $46.8 and closed at $46.2, up by 2.2% from its last closing price of 45.2. With more optimism surrounding the company, investors may be encouraged to invest in the stock in order to benefit from the potential upside. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lumentum Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 1.83k | 28.6 | 2.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lumentum Holdings. More…
| Operations | Investing | Financing |
| 306.6 | -631.6 | 365.1 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lumentum Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.42k | 2.87k | 22.57 |
Key Ratios Snapshot
Some of the financial key ratios for Lumentum Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.6% | 5.3% | 6.6% |
| FCF Margin | ROE | ROA |
| 10.7% | 5.0% | 1.7% |
Analysis
At GoodWhale, we have completed an analysis of LUMENTUM HOLDINGS‘s fundamentals. Based on our Risk Rating, LUMENTUM HOLDINGS is a high risk investment in terms of financial and business aspects. As part of our analysis, we have detected 4 risk warnings in LUMENTUM HOLDINGS’s income sheet, balance sheet, cashflow statement, and non financial data. If you want to know more about these risk warnings, you can register on goodwhale.com and check it out for yourself. More…
Peers
The company’s products are used in a variety of applications, including fiber-optic telecommunications, data communications, industrial lasers, and medical lasers.
– Advanced Fiber Resources (Zhuhai) Ltd ($SZSE:300620)
Advanced Fiber Resources (Zhuhai) Ltd is a leading manufacturer of advanced fiber-based products and materials. The company has a market cap of 6.59B as of 2022 and a return on equity of 5.23%. Advanced Fiber Resources (Zhuhai) Ltd manufactures a wide range of products, including fiber optic cable, data center equipment, and telecommunications equipment. The company’s products are used in a variety of applications, including data communications, computing, and networking.
– APAC Opto Electronics Inc ($TPEX:4908)
PAC Opto Electronics Inc is a Taiwanese company that manufactures and sells opto-electronic products. The company has a market cap of 2.39B as of 2022 and a Return on Equity of 12.6%. PAC Opto Electronics Inc’s products include semiconductor lasers, light emitting diodes, photo detectors, and optical communication components. The company’s products are used in a variety of applications including telecommunications, data storage, industrial, and medical.
– Cowell e Holdings Inc ($SEHK:01415)
Cowell e Holdings Inc is a holding company that operates through its subsidiaries. The company has a market cap of 10.95B as of 2022 and a ROE of 13.79%. The company’s subsidiaries engage in the business of providing financial services, including banking, lending, and investing. The company’s operations are conducted through its subsidiaries, which include Cowell e Bank, Cowell e Credit Union, and Cowell e Investment Services.
Summary
Lumentum Holdings (LITE) has been upgraded by JP Morgan from ‘Neutral’ to ‘Overweight’. Their investment analysis is based on the fact that Wall Street’s outlook on Lumentum is overly pessimistic. JP Morgan believes that the company’s products and investments have the potential to drive sustained growth over the next few years, and that their stock price should reflect this.
They cited the company’s solid balance sheet, strong customer base, and their growing IP portfolio as factors driving their analysis. This upgrade is likely to encourage investors to consider Lumentum as a viable option, potentially driving up its stock price in the near future.
