Last Updated on 07/09/2026
Monday – Lumentum Holdings (LITE)
The story:
Evercore initiated coverage on Lumentum Holdings with an Outperform rating and a $1,100 price target. The firm argues that while AI-driven demand for computing power continues to surge, a major bottleneck remains: efficiently moving data between processors.
Lumentum occupies a strategic position in the optical networking supply chain through its expertise in Indium Phosphide laser technology, a critical component for connecting AI compute clusters. Supply remains constrained while demand continues to accelerate, strengthening pricing power for established, vertically integrated suppliers.
Evercore expects the optical AI market to expand from roughly $18 billion today to more than $90 billion by 2030. Growth is anticipated across server racks, AI clusters, and data-center interconnects, reducing dependence on any single customer. The firm also highlights strong prospects for optical circuit switching, supported by Lumentum’s long-standing proprietary technology.
The analyst forecasts FY2028 earnings per share of approximately $35, with potential upside toward $50, alongside gross margins expanding to around 54%.
Tuesday – Sempra Energy (SRE)
The story:
Jefferies upgraded Sempra Energy to Buy, viewing the recent selloff as an overreaction to concerns surrounding Texas transmission-project delays and stalled California legislation.
According to the firm, these concerns have pushed Sempra to trade at a notable valuation discount compared with other regulated utilities. Despite uncertainty around timing, Jefferies believes the company’s long-term Texas infrastructure investment opportunities remain largely intact.
The analyst also notes that Sempra faces significantly less wildfire-related liability risk than certain California utility peers. While a full valuation recovery may depend on greater regulatory clarity, Jefferies believes investors willing to act before those uncertainties are resolved could benefit from the current discount.
Wednesday – EyePoint Pharmaceuticals (EYPT)
The story:
TD Cowen downgraded EyePoint Pharmaceuticals to Hold and reduced its price target to $4 following disappointing Phase III results from the company’s LUGANO study.
Management attributed the weak outcome to unfavorable patient randomization, but the analyst remains skeptical that regulators or investors will overlook a failed trial. Even after adjusting the data and excluding a small group of outlier patients, efficacy results appeared underwhelming.
The report suggests that the FDA is unlikely to place significant weight on retrospective statistical explanations. As a result, EyePoint’s upcoming LUCIA trial now carries heightened importance. Strong results may be required to support the broader development program.
TD Cowen has removed potential wet AMD revenue from its valuation model, leaving the company’s investment case increasingly dependent on future opportunities in diabetic macular edema.
Thursday – Covista (CVSA)
The story:
Truist downgraded Covista from Buy to Hold while maintaining its $140 price target.
The firm believes much of the expected turnaround in the Chamberlain segment is already reflected in the share price. While concerns about generative AI disrupting student recruitment appear limited, broader challenges across the education sector may continue to weigh on valuation multiples.
Truist argues that industry-wide pressures make it difficult to justify further multiple expansion, particularly after the stock’s strong performance. With the recovery story largely priced in, the firm sees fewer catalysts for meaningful upside from current levels.
Friday – Sonida Senior Living (SNDA)
The story:
Baird upgraded Sonida Senior Living to Outperform and assigned a $43 price target, citing favorable long-term demographic trends.
The firm believes senior-housing operators are positioned to benefit from growing demand driven by an aging population and limited supply growth. Sonida’s recently expanded operating platform is expected to improve efficiency, enhance returns on existing assets, and support future acquisition opportunities.
Baird also noted that integration efforts following recent transactions appear to be progressing smoothly, creating a foundation for additional external growth. Although leverage remains elevated, the company’s debt maturity schedule is manageable, with no significant maturities until 2028.
The analyst expects continued operating improvements and organic growth to gradually reduce leverage over the coming years.
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