Coherent price target raised to $85 from $80 at Northland

Northland analyst Tim Savageaux raised the firm’s price target on Coherent (COHR) to $85 from $80 and keeps an Outperform rating on the shares following “a busy week of positive AI Optical data points,” among which was Coherent’s analyst day, including increased gross and operating margin targets. The fact that shares traded down despite the upped targets, prior to Marvell (MRVL) driven weakness later last week, implies some concern around longer term risks to the company’s pluggable optics business from CPO and competitive module suppliers and possibly the lack of any major strategic move, the analyst tells investors. While the firm shares those concerns, it believes they are adequately reflected in the current valuation, the analyst added.