Analyst Vivek Arya of Bank of America Securities reiterated a Buy rating on Coherent Corp (COHR – Research Report), boosting the price target to $92.00.
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Vivek Arya has given his Buy rating due to a combination of factors that highlight Coherent Corp’s potential for significant growth. The company has set ambitious yet achievable targets, projecting earnings per share (EPS) of $7-$8 by fiscal year 2028. This projection is supported by Coherent’s strong position in a $32 billion data center serviceable addressable market (SAM) by 2030, driven by its differentiated portfolio and supply capabilities.
Furthermore, Coherent Corp is expected to achieve a compound annual growth rate (CAGR) of 10-15% in sales over the next few years, with gross margins improving to over 42%. The company’s strategic focus on high-growth areas such as AI-driven data centers and industrial applications, along with its ability to optimize costs and refine its operating model, positions it well for future success. These factors, combined with a valuation that suggests significant upside potential, underpin Arya’s Buy rating and the increased price objective of $92.
According to TipRanks, Arya is a 5-star analyst with an average return of 12.7% and a 54.11% success rate. Arya covers the Technology sector, focusing on stocks such as Nvidia, Intel, and Advanced Micro Devices.
In another report released yesterday, Barclays also maintained a Buy rating on the stock with a $90.00 price target.