Lumentum: The CPO Winner Investors Are Overlooking

Impact · against what's priced in

The news is largely non-catalytic for Lumentum as the market has already priced in the current margin expansion and high revenue growth. While the report highlights CPO and 1.6T growth, these are the exact drivers the market currently discounts, and the provided data does not offer a new catalyst to bridge the gap to bullish analyst targets.

LITE+0.00

Already priced in

The price assumes

recent improvement in gross margin to 50.4%

The article's report of 50% gross margins on $1B in revenue confirms a trend the market already assumes based on the most recent reported figures.

What LITE's price assumes · Sep 4

• LITE▲233%
• semiconductors▲2%
• revenue growth
• gross margins
• lasers
• optical networking
• photonics
• transceivers