Barclays analysts downgraded Lumentum Holdings (NASDAQ:) to Equal Weight from Obese, slicing the worth goal on the inventory to $40 from $55 per share in a word Wednesday.

Lumentum shares are down greater than 4% up to now within the session, at ranges final recorded in 2019.

The analysts advised traders that the corporate’s outlook being reset additional is one too many. “Expectations had been already low after the pre-announcement in early April, however the outlook into the remainder of the 12 months was reset additional with headwinds throughout the board,” wrote the analysts.

“Inside the Telecom enterprise, CIEN stock digestion is persisting, and the expectation is for comparable work-downs at different clients,” they added.

As well as, Barclays really feel LITE’s Industrial Lasers phase will stay weak properly into the second half, and 3D Sensing is now anticipated to solely step up reasonably in H2.

“Even when assuming some higher gross margins into CY24, we battle to get to better than $3.50 of EPS in CY24 and transfer to Equal Weight,” they concluded.