Coherent Corp’s Strategic Growth and Financial Optimization Drive Buy Rating

Benchmark Co. analyst Mark Miller maintained a Buy rating on Coherent Corp (COHR – Research Report) today and set a price target of $95.00.

Mark Miller’s rating is based on Coherent Corp’s strategic focus on growth opportunities and new product developments, particularly in the Data Center/Communications and Industrial segments. The company is targeting a revenue growth of 10% to 15%, with the Data Center/Communications segment expected to grow by 15% to 20% and the Industrial segment by 5% to 10%. This growth is driven by advancements in transceivers, optical switching, and lasers for precision manufacturing.
Additionally, Coherent is working towards improving its financial metrics, aiming for a gross margin of over 42% through cost reductions and pricing optimization. The company is also committed to reducing its debt and has already made significant progress in this area. With a focus on R&D and expanding its InP wafer capacity, Coherent is well-positioned to capitalize on the increasing demand for data rates driven by AI and other technological advancements. These factors collectively contribute to Mark Miller’s Buy rating for Coherent Corp.

In another report released today, J.P. Morgan also reiterated a Buy rating on the stock with a $86.00 price target.