$LITE

I'm increasing LITE's price target to $615 by mid-2027. Why?

Because Lumentum's revenue are accelerating toward ~50% y/y while its operating margins are exploding toward 30%, and the business is showing real positive operating leverage. That combination is rare.

Plus, at 13x forward sales, the market is still pricing LITE like a decent growth story, not a business on the verge of generating hundreds of millions in free cash flow. If Lumentum delivers my estimated $200+ million of free cash flow in fiscal 2027 at today’s valuation this business is a steal.

Yes, the balance sheet needs watching, but rising cash generation changes that conversation fast. This is why I’m bullish. This is why it’s not “too late” to get involved.