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NEW YORK - Coherent Corp. (NYSE: COHR), a technology company generating over $5.6 billion in annual revenue with impressive 21.7% year-over-year growth, has released a new diamond-loaded silicon carbide (SiC) ceramic composite designed to address thermal management challenges in AI datacenters and high-performance computing systems, according to a company press release issued Thursday. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.47.
The patented material achieves isotropic thermal conductivity exceeding 800 W/m-K, which the company states delivers twice the thermal performance of copper, the current industry standard. The composite also closely matches the coefficient of thermal expansion of silicon, potentially enabling direct integration with semiconductor devices. While the stock has shown volatility with a 52-week range of $45.58 to $113.60, analysts maintain a bullish outlook with price targets reaching up to $122.34.
Steve Rummel, Senior Vice President of Engineered Materials at Coherent, noted that cooling can account for up to 50% of datacenter energy consumption, highlighting the importance of thermal efficiency improvements.
The company reports that the new composite is corrosion-resistant, electrically insulating, and mechanically stable across a wide temperature range. It is compatible with direct liquid cooling systems and can be integrated into modern server architectures.
Potential applications for the material include heat spreading, microchannel cold plates, semiconductor device substrates, and other thermal management solutions where copper-based materials may be insufficient.
The diamond-SiC composite joins Coherent’s portfolio of engineered materials. The company, which maintains research, manufacturing, sales, and service facilities worldwide, develops technologies for industrial, communications, electronics, and instrumentation markets.
In other recent news, Coherent has seen several adjustments to its stock price targets by various investment firms, reflecting confidence in the company’s growth prospects. JPMorgan raised its price target to $100, citing improved revenue growth and margin projections, with expectations of earnings per share reaching $5.70 by fiscal year 2027. Citi analysts increased their target to $115, highlighting Coherent’s focus on core businesses and profitability, with projected sales of $8.1 billion and earnings per share of $8.44 by fiscal year 2028. Stifel maintained a $100 price target, emphasizing Coherent’s strategic focus on photonic technologies and projected revenue growth of 10%-15% annually. Rosenblatt Securities kept a $95 target, expressing confidence in the company’s leadership and strategic direction, with expectations of doubling operating profit in four years. Needham raised its target to $90, underscoring the potential for significant margin expansion and growth in the data center connectivity sector. These developments reflect a broadly optimistic outlook from analysts on Coherent’s future performance across various high-growth sectors.
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