Stifel maintains Coherent stock Buy rating, $100 target

Published 08/05/2025, 15:42
Stifel maintains Coherent stock Buy rating, $100 target

On Thursday, Stifel analysts maintained a Buy rating on Coherent (NYSE:COHR) stock with a steady price target of $100.00. Currently trading at $69.62, InvestingPro analysis indicates the stock is currently overvalued, though it shows strong momentum with a 27% return over the past year despite significant price volatility. The firm’s analysts highlighted Coherent’s effective execution on growth opportunities and a strategic move towards an optimized portfolio, which includes core technologies and assets. For the March quarter, Coherent reported a significant 46% year-over-year increase in Data Center & Communications revenue, while its Industrial and Other revenue remained stable with a 1% rise compared to the previous year.

Coherent has also experienced a robust 54% year-over-year growth in Datacom revenue and a positive trend in telecom-related sales, marking the third consecutive quarter of revenue growth. Despite the positive momentum, the company’s guidance for the June quarter anticipates flat revenue compared to March. This projection is based on the expectation that the growth in Data Center & Communications revenue will be balanced by a modest decline in Industrial revenue.

Management’s near-term approach for the Industrial segment is cautious due to potential macroeconomic and tariff-related impacts. In light of these factors, Stifel analysts have made slight adjustments to their estimates but continue to have a positive outlook on Coherent’s long-term prospects. They believe that Coherent is well-positioned for accelerated growth and profitability in the coming years. With revenue growth of 14.6% in the last twelve months and analysts forecasting profitability this year, InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report that provides deep-dive analysis of Coherent’s financial health and growth prospects.

In other recent news, Coherent Inc. reported impressive financial results for Q3 2025, with earnings per share (EPS) of $0.91, surpassing the forecasted $0.855. The company’s revenue reached a record $1.5 billion, marking a 24% increase year-over-year, driven by strong demand in the AI data center and telecom sectors. Coherent also successfully reduced its debt by $136 million, enhancing its financial stability. Citi analysts maintained a Buy rating on Coherent with a price target of $110, following the company’s March-quarter earnings that exceeded expectations. The analysts highlighted Coherent’s strategic focus on profitability and effective response to industry challenges, such as AI demand and tariffs. Coherent introduced innovative products like 1.6T transceivers, signaling future growth potential, and provided Q4 revenue guidance between $1,425 million and $1,575 million. The company continues to anticipate revenue from its 1.6T transceivers within the current calendar year, showcasing ongoing innovation and market expansion.

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