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Lumentum poised for growth with rising optical device demand and improving cash flow outlook.

Analyst Insights
10 Jul 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Lumentum Holdings is set to benefit from industry upgrades to faster data transmission, boosting demand for its optical devices. The market for these devices is expected to remain tight until at least 2028, supporting price increases and margin growth. Lumentum is nearing a key point where it will generate positive free cash flow, with projections of over 30% free cash flow margins by fiscal year 2028, helping offset higher interest rate risks. Despite a recent stock correction, the company’s valuation remains fair and technical indicators are bullish, suggesting buying opportunities on pullbacks.

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