Coherent Corp, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Ryan Koontz from Needham maintained a Buy rating on the stock and has a $190.00 price target.
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Ryan Koontz has given his Buy rating due to a combination of factors that highlight Coherent Corp’s strong performance and future potential. The company has exceeded expectations in its first fiscal quarter of 2026, surpassing consensus revenue and earnings per share estimates by 3% and $0.11, respectively. This performance is attributed to Coherent’s successful capacity expansions, which have positioned it to capitalize on the rapid growth in AI and cloud capital expenditures, particularly through its indium phosphide fabs.
Furthermore, the company’s Data Center & Communications segment has shown significant year-over-year growth, with a 26% increase driven by heightened demand and an improved supply of commercial and internal EML lasers. Coherent’s strong second-quarter revenue guidance, projected to grow by 5% quarter-over-quarter, underscores the sustained demand and supply improvements in this segment. Additionally, the company is poised to benefit from a shift in datacom transceiver market share away from Chinese competitors, enhancing its prospects. With increased confidence in Coherent’s laser supply and market share gains, Koontz has raised the financial estimates for fiscal years 2026 and 2027 and set a new price target of $190.
In another report released yesterday, Rosenblatt Securities also maintained a Buy rating on the stock with a $220.00 price target.