Lumentum Holdings (LITE) Soars 15% on PT Hike Ahead of Earnings

Core Insights - Lumentum Holdings Inc. (NASDAQ:LITE) experienced a significant share price increase of 15.52% week-on-week, driven by investor enthusiasm ahead of its earnings report and a price target upgrade from Morgan Stanley [1][3]. Financial Performance - The company is set to announce its financial and operational highlights for Q2 2026 on February 3, 2026, after market close, followed by a conference call to discuss the results [2]. Analyst Ratings and Market Sentiment - Morgan Stanley raised its price target for Lumentum Holdings to $350 from $304, while maintaining an "equal weight" rating on the stock [3]. - The stock has appreciated approximately 100% since the FQ1 results in early November, making it a top choice for incremental investors as the year closed [4]. - Despite the positive sentiment, Morgan Stanley noted that investors are becoming more neutral ahead of the upcoming results due to concerns about the sustainability of high expectations, particularly as the company may remain "capacity constrained" in several categories [5].