Lumentum, Coherent Rip Higher As Washington Targets Chinese Optical Transceivers

Lumentum Holdings Inc. (NASDAQ: LITE) saw its stock rise approximately 9%, while Coherent Corp. (NYSE: COHR) increased by 11% following reports of potential U.S. restrictions on Chinese optical transceivers, particularly those over 3.2T. Analysts suggest that these restrictions could support demand for both companies, as they are critical suppliers for data centers. Bernstein recently initiated coverage of Lumentum with an Outperform rating and a price target of $1,220. At the time of publication, Lumentum shares were priced at $1,046.39 and Coherent shares at $319.48.