Coherent Corp’s Strong Performance and Strategic Initiatives Drive Positive Outlook and Raised Price Objective

Analyst Vivek Arya from Bank of America Securities reiterated a Buy rating on Coherent Corp (COHR – Research Report) and increased the price target to $80.00 from $70.00.

Vivek Arya’s rating is based on Coherent Corp’s strong performance and strategic initiatives that position it well for future growth. The company has shown consistent execution with its Q1 sales and earnings per share exceeding expectations, and its guidance for Q2 also surpassing forecasts, largely driven by strength in AI datacom. Coherent is making significant progress in ramping up its 800G and 1.6T technologies while optimizing its internal portfolio and costs.
Furthermore, Coherent benefits from a lack of significant tariff impacts, unlike some peers, and its transceiver business has shown robust growth. The company is on track to achieve its long-term gross margin goals through price optimizations and yield improvements. Additionally, Coherent’s diverse supply chain and expanding production capacity enhance its resilience and ability to capitalize on growth opportunities in AI and telecommunications. These factors contribute to Arya’s positive outlook and the raised price objective for Coherent’s stock.

According to TipRanks, Arya is a 5-star analyst with an average return of 11.0% and a 51.92% success rate. Arya covers the Technology sector, focusing on stocks such as Nvidia, Intel, and Advanced Micro Devices.

In another report released today, Barclays also maintained a Buy rating on the stock with a $80.00 price target.