Bank of America just raised its EUR/USD forecast
On Wednesday, Raymond (NSE:RYMD) James analyst Simon Leopold increased the price target for Coherent shares (NYSE:COHR) to $96.00 from $91.00, while reiterating a Strong Buy rating on the company. Currently trading at $81.19, the stock sits within a broader analyst target range of $74-$125, according to InvestingPro data. Leopold’s optimistic outlook followed Coherent’s recent analyst and investor day, where the company presented long-term financial targets that surpassed both Raymond James’ and broader market expectations.
Despite a roughly 2% intra-day dip in Coherent’s share price, the firm’s long-term projections were a highlight. Management outlined goals that included raising the gross margin and operating margin forecasts, aiming for a gross margin greater than 42% and an operating margin over 24%. InvestingPro analysis shows the company currently maintains a healthy current ratio of 2.47, though it’s worth noting that the stock’s beta of 1.91 indicates higher volatility than the market average. These targets suggest that by fiscal year 2028, Coherent could achieve earnings per share (EPS) of approximately $8-9, a significant increase from projections of under $4 in FY25.
In response to these ambitious targets, Raymond James has adjusted its estimates to account for anticipated growth in the industrial laser sector and further gross margin expansion. These positive adjustments are expected to more than compensate for the increased research and development spending that Coherent has planned. The company’s recent performance supports this optimistic outlook, with InvestingPro data showing impressive revenue growth of 21.67% over the last twelve months. Subscribers to InvestingPro can access 8 additional key insights about Coherent’s financial health and growth prospects, along with comprehensive valuation metrics. The revised price target reflects this enhanced growth and margin outlook.
Coherent’s management has expressed intentions to strike a balance between achieving strong annual growth rates of 10-15% and expanding profit margins. The company’s strategic focus on these areas is a key factor behind Raymond James’ continued Strong Buy rating and the raised price target for the stock.
In other recent news, Coherent Inc. reported strong financial results for Q3 2025, with earnings per share of $0.91, surpassing the forecast of $0.855. The company achieved a 24% year-over-year revenue increase, reaching $1.5 billion, driven by growth in the AI data center and telecom sectors. Coherent also reduced its debt by $136 million, enhancing its financial stability. Analysts from Stifel and Citi have maintained their Buy ratings on Coherent, with price targets of $100 and $110, respectively, following the company’s impressive earnings report. Stifel highlighted Coherent’s 46% year-over-year increase in Data Center & Communications revenue, while Citi noted the company’s effective response to industry challenges and margin maintenance. JPMorgan reiterated its Overweight rating with an $86 target, citing Coherent’s growth trajectory under CEO Jim Anderson. The firm also added Coherent to its Positive Catalyst Watch, reflecting investor optimism. Coherent’s strategic initiatives, including portfolio optimization and cost reductions, are expected to support long-term gross margin goals of over 43%.
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