William Blair analyst Jed Dorsheimer has maintained their neutral stance on COHR stock, giving a Hold rating today.
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Jed Dorsheimer has given his Hold rating due to a combination of factors including the current valuation of Coherent Corp’s stock and the company’s strategic initiatives. Coherent’s stock has benefited from the AI momentum, particularly due to its transceivers being a crucial part of the AI tech stack. However, despite the strong demand for AI and the new CEO’s efforts to streamline operations, the stock is considered to be fairly valued at its current levels.
Coherent trades at a premium compared to its peers, and while it is well-positioned to benefit from the expansion of AI data centers, the risk/reward profile is seen as balanced. The company is making strides in cost reduction and optimizing its product portfolio, which includes exiting noncore areas and divesting assets to focus on strategic markets. These efforts, along with a new agreement with Apple, are positive, but the overall valuation and market conditions justify a Hold rating.
In another report released today, Bank of America Securities also downgraded the stock to a Hold with a $105.00 price target.
Based on the recent corporate insider activity of 77 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of COHR in relation to earlier this year.