Craig-Hallum analyst Richard Shannon told investors in a research note that he believes the proposed acquisition of Oclaro (OCLR) by Lumentum (LITE) makes "strong" strategic sense, as it brings leading technologies across telecom and datacom markets to the company. He thinks there will be few regulatory hurdles to the deal and doesn't see a superior offer merging. The analyst, who backed his Buy rating and $90 price target on Lumentum shares and said he continues to view Lumentum as one of his top ideas for 2018, added that the deal could spark additional consolidation in the space, potentially impacting pricing longer-term.