Buy Apple-supplier Lumentum because demand for its 3D sensors will surge: Piper

Source: Lumentum

Piper Jaffray believes Lumentum shares will rise, predicting Apple will include its 3D sensor components in more iPhone models this year.

The firm reiterated its overweight rating for the company’s shares, forecasting strong growth for its products in the second-half of 2018.

“We view LITE as one of the best stocks to own in the optical group given its high relative exposure to fast growing markets such as 3D sensing, ROADMs and industrial lasers,” analyst Troy Jensen said in a note to clients Monday. “We believe 3D sensing demand inflects in the next few months and anticipate LITE will be the primary supplier for Apple.”

Lumentum makes optical, lasers and 3d sensing components for telecom, industrial and technology companies. Its technology powers the Face ID feature in Apple’s iPhone X.