U.S. Markets Declined on Tuesday, with AeroVironment Experiencing the Largest Drop

Written by Emily J. Thompson, Senior Investment Analyst

LITE-2.19%

COMP-0.38%

DJIA+0.36%

Source: Barron's

Updated: 2d ago

0mins

Source: Barron's

U.S. Stock Market Decline: Stock indexes in the U.S. experienced a decline on Tuesday, with significant drops across major indices.
Specific Index Performance: The S&P 500 fell by 2.39%, the Dow Jones dropped by 2.06%, and the Nasdaq experienced a decrease of 1.76%.

LITE

$354.49+Infinity%1D

Analyst Views on LITE

Wall Street analysts forecast LITE stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for LITE is 303.36 USD with a low forecast of 147.00 USD and a high forecast of 470.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

14 Analyst Rating

9 Buy

5 Hold

0 Sell

Moderate Buy

Current: 362.440

Low

147.00

Averages

303.36

High

470.00

Current: 362.440

Low

147.00

Averages

303.36

High

470.00

Mizuho

Outperform

upgrade

$325 -> $455

2026-01-09

Reason

Mizuho

Price Target

$325 -> $455

AI Analysis

2026-01-09

upgrade

Outperform

Reason

Mizuho raised the firm's price target on Lumentum to $455 from $325 and keeps an Outperform rating on the shares. The firm adjusted targets in the semiconductors and semiconductor capital equipment group as part of its 2026 outlook. Mizuho sees continued upside for the group in 2026 due to "attractive valuations," but more modest than 2025. The analyst' top sectors in 2026 are AI accelerators and wafter fab equipment, Optical, and memory, while the firm remains cautious on electric vehicles, autos and analog as well as computers and handsets. Mizuho's top picks for 2026 are Nvidia, Lumentum and Broadcom.

Needham

Buy

upgrade

$290 -> $470

2026-01-08

Reason

Needham

Price Target

$290 -> $470

2026-01-08

upgrade

Buy

Reason

Needham raised the firm's price target on Lumentum to $470 from $290 and keeps a Buy rating on the shares. The analyst also repeats Lumentum as a top pick for 2026. Needham has increased conviction that optical spending for artificial intelligence infrastructure continues to increase. Lumentum is "uniquely positioned" to benefit throughout AI data center applications, the analyst tells investors in a research note. The firm says limited competition in InP laser fabrication adds to its conviction in the shares.

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Morgan Stanley

Equal Weight

maintain

$190 -> $304

2025-12-17

Reason

Morgan Stanley

Price Target

$190 -> $304

2025-12-17

maintain

Equal Weight

Reason

Morgan Stanley raised the firm's price target on Lumentum to $304 from $190 and keeps an Equal Weight rating on the shares. The AI trade broadened out from semi names in 2025, helping infrastructure names, particularly within optical, notes the analyst, who believes that trade can continue, particularly in optical, through the first half of 2026. However, investors will "need to get more selective for full year returns given multiples," the analyst added in a year-ahead note on the group.

JPMorgan

Samik Chatterjee

Overweight

upgrade

$235 -> $350

2025-12-05

Reason

JPMorgan

Samik Chatterjee

Price Target

$235 -> $350

2025-12-05

upgrade

Overweight

Reason

JPMorgan analyst Samik Chatterjee raised the firm's price target on Lumentum to $350 from $235 and keeps an Overweight rating on the shares. The firm upped estimates for the optical companies citing "scale-across and multi-rail opportunities." The firm says the incremental total addressable market associated with scale-across, as well as telecom product innovation to support multi-rail infrastructure in long-haul and metro networks, creates a stronger outlook for the sustainability of "already robust growth rates over a longer period" for the optical names. As it results, JPMorgan is giving the stocks a higher earnings multiple.

About LITE

Lumentum Holdings Inc. is a designer and manufacturer of optical and photonic products enabling optical networking and laser applications worldwide. Its segments include Cloud & Networking and Industrial Tech. The Cloud & Networking segment products include a comprehensive portfolio of optical and photonic components, modules, and subsystems supplied to cloud and communications network operators and network equipment manufacturers building cloud data center infrastructure, including products for artificial intelligence and machine learning (AI/ML) and data center interconnect (DCI) applications, and communications service provider networks, including products for access (local), metro (intracity), long-haul (city-to-city and worldwide), and submarine (undersea) network infrastructure. The Industrial Tech segment products include solid-state lasers, kilowatt-class fiber lasers, diode lasers, ultrafast lasers, and gas lasers, which address applications in numerous end-markets.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.