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Lumentum’s Valuation Can Be Stretched Some More

December 10th, 2019 · No Comments

  • The company is facing secular trends of demand for increased bandwidth most notably from the build-out of 5G, but it is also riding the 3D sensing wave.
  • The company, on the back of a strong R&D effort and an acquisition, has also become a more premium player, which is reflected in rising margins.
  • The favorable trends are likely to continue for a couple of years, and while already at least in part reflected in the valuation, there is room for some further upside.
  • The company is also producing large amounts of cash, which enables it to deleverage.

Source: Lumentum’s Valuation Can Be Stretched Some More – Lumentum Holdings Inc. (NASDAQ:LITE) | Seeking Alpha

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