Coherent Corp, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Christopher Rolland from Susquehanna reiterated a Buy rating on the stock and has a $120.00 price target.
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Christopher Rolland has given his Buy rating due to a combination of factors including Coherent Corp’s strategic moves and growth prospects. Despite slightly disappointing results in the data communications segment, the company is optimizing its portfolio by selling its Aerospace and Defense business, which is expected to streamline operations and focus on core areas.
Coherent is also experiencing growth in its 800G transceivers and Optical Circuit Switch revenues, with expectations for further expansion in these areas by 2026. The company is expanding its indium phosphide production and has begun production at its new facility in Texas, which will support its partnership with Apple. Additionally, Coherent’s telecom segment has shown consistent growth, and the industrial sector has performed better than anticipated. These factors, along with stable demand for silicon carbide, underpin the positive outlook and justify the Buy rating.
According to TipRanks, Rolland is a 5-star analyst with an average return of 16.0% and a 55.82% success rate. Rolland covers the Technology sector, focusing on stocks such as Coherent Corp, Marvell, and ON Semiconductor.
In another report released today, Barclays also maintained a Buy rating on the stock with a $110.00 price target.