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On Thursday, Stifel analysts reiterated their Buy rating for Coherent (NYSE:COHR) shares, maintaining a $120.00 price target. Currently trading at $67.54, the stock appears overvalued according to InvestingPro analysis. The endorsement comes after a series of high-level discussions with Coherent’s management at the Optical Fiber Communication Conference (OFC) 2025, which took place on Tuesday, April 1st. Notably, analyst targets range from $80 to $136, with a strong consensus recommendation of 1.84 (Buy).
The Stifel team met with key Coherent executives including Chief Strategy Officer and President of Materials, Giovanni Barbarossa, Chief Marketing Officer Sanjai Parthasarathi, and Senior Vice President of Investor Relations, Paul Silverstein. The conversations at the event revolved around several pressing topics in the industry, such as the intricacies of Coherent Photonic Operation (CPO), Intensity Modulation Direct Detection (IMDD) versus Coherent-Lite, and Coherent’s strategic positioning to capitalize on fast-paced technological advancements. InvestingPro data shows the company’s strong revenue growth of 14.6% in the last twelve months, with total revenue reaching $5.3 billion.
The analysts provided insights from their interactions, indicating that Coherent’s management is actively engaged in ensuring the company remains at the forefront of technological development. This proactive approach is seen as a positive sign for the company’s future growth prospects.
Additionally, Coherent is scheduled to host an Investor Day on May 28th in New York. This event is expected to furnish investors with more detailed, long-term quantitative projections and strategic plans for the company.
Stifel’s continued support for Coherent stock with a strong Buy rating and a steady price target of $120.00 reflects confidence in the company’s potential and strategic direction following the informative discussions at OFC 2025. Investors and stakeholders will be looking forward to the upcoming Investor Day for further insights into Coherent’s outlook and market strategies.
In other recent news, Lumentum Holdings (NASDAQ:LITE) has unveiled an ambitious growth strategy, aiming to boost its quarterly revenues from $400 million to over $750 million in the coming years. The company plans to begin shipping Optical Circuit Switches to Artificial Intelligence Data Centers by the latter half of 2025, with a projected market size of $1.5 billion by 2029. Rosenblatt Securities has expressed a positive outlook on Lumentum, highlighting the company’s potential to capture a significant market share in the Optical Circuit Switches sector. Meanwhile, Coherent Corp. has announced the launch of a 400 Gb/s Differential Electro-absorption Modulated Laser, designed to enhance data center operations, specifically for AI infrastructure. Coherent also plans to showcase a 1.6T-SR8 optical transceiver at the upcoming Optical Fiber Communication Conference and Exhibition 2025. In another strategic move, Coherent has decided to sell its epitaxial fabrication facility in Champaign, Illinois, as part of efforts to streamline its manufacturing operations. The company has not disclosed any potential buyers or terms for the sale. Coherent continues to focus on pushing the envelope in photonics technology and optical transport solutions.
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