Coherent downgraded to Neutral at BofA on growth deceleration

As previously reported, BofA downgraded Coherent (COHR) to Neutral from Buy with a price target of $105, up from $92, citing decelerating growth in its data center business as well as “modest” gross margin trends despite multiple restructuring actions. The sale of its aerospace and defense business also creates about a $170M headwind to growth in FY26, while its new Apple (AAPL) contract does not come until FY27, the analyst noted. However, the firm raised its respective estimates by 5% and 12% for calendar year 2026 and 2027, citing lower interest expense.