Piper Jaffray analyst Troy Jensen remains a buyer of Lumentum (LITE) shares following yesterday's 33% decline. The reduced forecast at Apple (AAPL) has nothing to do with lost share for Lumentum, rather it is more indicative of lower sales forecasts at this key account, Jensen tells investors in a research note. The analyst continues to believe the 3D sensing market "will grow handsomely" with Apple and he notes that Android phones are just beginning their adoption. He also sees a pending opportunity for world facing 3D sensing applications. Further, the core telco optics market is in the early innings of an upgrade cycle, which should provide a "nice tailwind" for Lumentum, says Jensen. He also thinks the pending acquisition of Oclaro (OCLR) could also be a catalyst for the shares given the earnings accretion once the merger gets approval. The analyst lowered his price target for Lumentum to $72 from $85 and reiterates an Overweight rating on the name.
Netflix (NFLX) is scheduled to report results of its second fiscal quarter after market close on July 17, with a conference call scheduled for 6:00 pm ET. What to watch:... To see the rest of the story go to thefly.com. See Story Here
Spotify (SPOT) shares are falling in afternoon trading after Bloomberg's Lucas Shaw and Mark Gurman reported that Apple (AAPL) plans to fund original, exclusive podcasts to increase competition with Spotify and Stitcher. Apple executives have reached out to media companies to discuss buying exclusive rights to podcasts, the report added. In afternoon trading following the report, Spotify shares have dipped 2% to $151.03.