Shares of Lumentum Holdings Inc.
LITE,
rallied 5.5% in afternoon buying and selling, after Raymond James analyst Simon Leopold pounded the desk on optical and photonics firm, saying losing the battle to acquire of laser technology company Coherent Inc.
COHR,
was a good factor. In a analysis word titled, “Lumentum walks, we run to strong buy rating,” Leopold upgraded the stock to strong buy from outperform. He stated that with the deal danger within the rear view, and potential upside led by 3D sensing, telecom, LiDAR and 5G, “we see an attractive entry point.” The stock rose 8.5% on Thursday following information that Coherent was going with II-VI Inc.
IIVI,
as its favored suitor. Prior to dropping out to IIVI, the stock had tumbled 25.7% for the reason that authentic deal to buy Coherent was introduced by way of Wednesday. “We liked, but did not love, the deal when it was first announced, but the bidding war ended at an elevated valuation for Coherent,” Leopold wrote in a word to shoppers. “We believe management’s decision demonstrates its discipline in selecting its battles.” Lumentum’s stock has misplaced 8.0% over the previous three months, whereas II-VI shares have dropped 12.2% and the S&P 500
SPX,
has gained 6.2%.
