Street Calls of the Week
SAXONBURG, Pa. - Coherent Corp. (NYSE:COHR), whose stock has surged nearly 50% over the past six months according to InvestingPro data, announced significant upgrades to its Multi-Rail technology platform for optical transport networks, according to a press release issued Friday. The company maintains a "GOOD" overall financial health score, suggesting strong operational fundamentals.
The company introduced a new Dynamic Gain Equalizer (DGE) that combines C and L bands in a single module, which reportedly doubles transmission bandwidth while reducing footprint by 20%. The design aims to help hyperscale operators increase network capacity without proportional expansion of physical infrastructure or power requirements. With revenue growth exceeding 23% in the last twelve months, Coherent continues to demonstrate strong market momentum. (InvestingPro subscribers can access 13 additional key insights about COHR’s performance and outlook.)
Coherent also enhanced its Optical Channel Monitoring (OCM) capabilities, cutting scan times by half and expanding support to 32 monitoring points per module. These improvements are designed to provide network operators with faster provisioning and increased visibility across their systems.
"As demand for optical communications accelerates, Coherent continues to push the boundaries of scale and efficiency," said Madhu Krishnaswamy, Senior Vice President of Telecommunication Transport at Coherent, in the statement.
The company indicated it is collaborating with network equipment manufacturers to integrate these technologies into transmission systems. Sampling is expected to begin in late 2026, according to the release.
Coherent plans to demonstrate the next-generation Multi-Rail technology at the ECOC 2025 industry exhibition at Booth C3124.
Founded in 1971, Coherent describes itself as a global photonics leader serving customers in datacenter, communications, and industrial markets across more than 20 countries. The company generates annual revenue exceeding $5.8 billion, with analysts maintaining a bullish outlook and price targets reaching up to $135. For comprehensive analysis and detailed metrics, investors can access the full research report available on InvestingPro.
In other recent news, Coherent Corp. has made several significant announcements. The company has begun sampling new high-power 400 mW continuous-wave lasers intended for next-generation co-packaged optics and silicon photonics applications. Additionally, Coherent has developed next-generation 2D VCSEL and photodiode arrays for AI datacenter networks, leveraging its existing 100G PAM4 multimode platform to enhance power efficiency and compact design. The company also launched a new family of quad-channel integrated circuits to enable faster and more energy-efficient optical transceivers for cloud, AI, and telecom networks, including the CHR2075 and a new chipset for 400G ZR/ZR+ coherent optical links. Furthermore, Coherent announced the development of a high-precision molded 2D lens array, which aims to expand optical channels bandwidth by leveraging its glass molding platform. Lastly, Coherent introduced two optical testing instruments, including the WaveAnalyzer 200B Portable Optical Spectrum Analyzer, designed to improve testing speed and precision in advanced optical networks. These recent developments highlight Coherent’s continued focus on innovation in optical technologies.
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