Coherent stock price target raised to $100 from $86 at JPMorgan

JPMorgan raised its price target on Coherent (NYSE: NYSE:COHR) to $100 from $86 on Thursday, while maintaining an Overweight rating on the stock. Currently trading at $81.51, with a 52-week range of $45.58 to $113.60, the stock appears overvalued according to InvestingPro Fair Value metrics. The increase reflects JPMorgan’s higher confidence in the company’s ability to achieve its investor day targets.

The research firm adjusted its estimates to account for Coherent’s projected higher growth and margin trajectory. The company has demonstrated strong revenue growth of 21.7% over the last twelve months, with current gross margins at 34.5%. JPMorgan now models 10% revenue growth for both fiscal 2026 and 2027, with gross margins of approximately 39% in FY26 and 40% in FY27. InvestingPro analysis reveals 8 additional key insights about Coherent’s growth prospects.

These projections translate to earnings per share forecasts of $4.50 in FY26 and $5.70 in FY27, putting JPMorgan’s FY27 estimates 4% above consensus. The firm noted it is conservatively assuming Coherent will achieve its 3-4 year targets in 4 years rather than 3, despite identifying "multiple levers of upside" to these assumptions.

JPMorgan cited Coherent’s success in addressing concerns about CPO-led disruption through emphasis on its broad-based portfolio as a key factor in raising the target multiple to 22x.

The new December 2025 price target of $100 represents a significant increase from the previous $86 target, reflecting JPMorgan’s strengthened outlook on Coherent’s business prospects.

In other recent news, Coherent has been the focus of several investment firms, with a series of updates on its stock price targets and ratings. Citi analysts have raised their price target for Coherent to $115, maintaining a Buy rating, after revising their fiscal year 2026 sales and earnings per share (EPS) estimates upward. Stifel also reiterated a Buy rating with a $100 target, highlighting Coherent’s focus on photonic technologies and its growth strategy in the Data Center and Communications and Industrial sectors. Rosenblatt Securities maintained its Buy rating with a $95 target, expressing confidence in Coherent’s leadership and strategic direction, and noting potential for significant EPS growth within four years.

Needham increased its price target to $90, reaffirming a Buy rating, and emphasized the company’s growth prospects in the optical WAN communications and industrial lasers markets. Analysts from Needham expect Coherent to nearly double its non-GAAP operating margin within the next few years. BofA Securities raised its price target to $92, maintaining a Buy rating, and highlighted Coherent’s strengths in its portfolio and supply chain, projecting significant sales and EPS growth by fiscal year 2028. BofA analysts noted Coherent’s potential to enhance its gross margins and expand its price-to-earnings multiple.

These developments reflect a broad confidence among analysts in Coherent’s strategic initiatives and growth potential across various high-growth sectors. The company’s focus on photonics and optics technology, along with anticipated operational efficiencies, underpins these optimistic outlooks.

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