Deere upgraded, Lumentum initiated: Wall Street's top analyst calls

Edison International shares dropped 3% after Muddy Waters alleged willful misconduct in the Eaton Fire, potentially exposing the company to $4B-$20B in damages. The short seller claims Edison knew about deficiencies in its wildfire risk model for five years. Edison denies wrongdoing and is cooperating with investigations.

Caterpillar (CAT) and Deere (DE) shares fell 7% and 4% respectively as 30-year Treasury yields rose to 5.7%, the highest in over 20 years. Both companies were trading at high multiples before the selloff. CAT's growth is driven by AI-related power sector, while DE's outlook depends on agricultural demand recovery. Hedge fund ownership in both companies has slightly declined.

Analysts at Susquehanna and Bernstein provided updates on Intel (INTC) and Lumentum (LITE). Christopher Rolland reiterated a Hold rating on INTC with a $115.00 target, while Daniel Zhu maintained a Buy on LITE with a $1220.00 target. INTC has a Hold consensus and $115.23 average target, while LITE has a Strong Buy consensus and $1131.78 average target.

AGCO shares fell after the FTC and USDA announced a joint probe into alleged anticompetitive practices in the agricultural machinery industry. The stock later rebounded due to dip-buying and positive analyst commentary on its long-term strategy. AGCO's strong balance sheet and growing parts and service business may help it navigate industry challenges, but revenue weakness and margin pressure pose risks.

Lumentum Holdings (LITE) shares fell $107.95 on October 12, 2026, closing at $995.41. The drop follows volatility and comes amid concerns over its high P/S ratio of 28.68, which is well above historical and industry norms. The company has a GF Score of 68, indicating moderate financial health but weak valuation and momentum. Insiders have sold $175.8 million in shares over the past year with no purchases reported.

Lumentum (LITE) shares fell 9.8% on Monday. The company has benefited from AI demand, with its CEO noting strong sales. Broadcom (AVGO) CEO Hock Tan expressed concerns about AI's long-term profitability, causing a pullback in AI-related stocks. Lumentum's growth depends on sustained AI data center demand.