From Seekingalpha · JR Research · · 40s
Lumentum Breakout Potential
Lumentum's optical networking demand surge could drive significant upside by 2028.
In brief
Lumentum's optical networking demand surge could drive significant upside by 2028. Lumentum faces 70% demand gap for some products through 2028 but targets $40 adjusted EPS by 2028. Originally reported by Seekingalpha.
Demand Inflection Point
Lumentum faces significant demand-supply gaps unable to meet 70% of demand for some products through next year.
Elevated Margins
Lumentum supports elevated margins through FY2028 with strong order flow and management targeting $40 adjusted EPS.
Upside Breakout
Lumentum could be materially undervalued if execution succeeds despite near-term upside being capped until P&L validation for 2027.
What matters most
Lumentum faces 70% demand gap for some products through 2028 but targets $40 adjusted EPS by 2028.
