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Stock impact report

Lumentum: Great Business, Wrong Price; Risk/Reward Ratio Is Unfavorable [Seeking Alpha]

Lumentum Holdings Inc. (LITE) 
Last lumentum holdings inc. earnings: 2/4 07:30 am Check Earnings Report
Company Research Source: Seeking Alpha
LITE's current valuation reflects forward P/E and EV/EBITDA multiples far above industry averages, indicating significant downside risk if expectations falter. Despite robust quarterly results and strong demand for optical chips, the risk/reward profile is unfavorable due to overbought technicals, customer concentration, and potential multiple compression. My rating is Hold/Sell at current levels, with a fair value target of $230; I would only consider re-entering in the $215–$235 range. JHVEPhoto/iStock Editorial via Getty Images My thesis Lumentum ( LITE ) is an interesting company, but its price no longer is. As of this writing, with markets closed, the stock price is $262. Personally, I think the price is over my fair value. Technically, with the RSI at 78, we This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hou Show less Read more
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