Lumentum Holdings (LITE) saw its stock price surge 5.75% during intraday trading on Monday, marking a significant upward movement for the optical and photonic products manufacturer.

The sharp rise appears to be driven by multiple positive catalysts. First, BNP Paribas significantly raised its price target for Lumentum to $1,040 from $625 while maintaining an Outperform rating, representing a 66.4% increase. Separately, Craig Hallum also boosted its price target to $900 from $600 while keeping a Buy rating on the stock.

Additionally, Lumentum is set to join the S&P 500 index before the market opens, which typically generates increased buying interest from index funds and other institutional investors that track the benchmark index. According to analysts polled by FactSet, Lumentum has an average rating of overweight with a mean price target of $699.86, indicating generally positive analyst sentiment toward the company.