Lumentum's stock fell 1.9% to $65.25 after Morgan Stanley analysts lowered their rating on the tech company, which makes sensors and 3D imaging used in Apple iPhones, to equal weight from overweight.
Analyst Meta Marshall contends no more "low hanging fruit" can be picked at Lumentum's current valuation, Bloomberg reported.
The stock has jumped more than 50% over the past year, having closed at $41.52 a share on Nov. 12, 2018.
The downgrade makes Morgan Stanley an outlier, the only brokerage firm or bank the news service tracks that doesn't have a buy recommendation on Lumentum.
Currently, analysts at 15 firms urge investors to snap up shares of the iPhone supplier, compared with the single hold.
Even so, the Morgan Stanley analyst raised his price target on Lumentum to $68 a share from $65.
Lumentum on Oct. 31 reported quarterly revenue and earnings that beat analyst estimates.
The Milpitas, Calif., company earned $1.44 a share in the first quarter ended Sept. 28. Analysts polled by Zacks Investment Research had forecast $1.20 a share.
Lumentum reported revenue of just under $450 million for the quarter, .08% above the Zacks-derived estimate and 27% above the year-earlier quarter's $354.1 million.
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