Shares of Coherent Corp (NYSE:COHR) were trading under pressure on Thursday, despite the company reporting upbeat quarterly results.
Here are the key analyst insights:
- Rosenblatt Securities analyst Mike Genovese reaffirmed a Buy rating, while raising the price target from $220 to $300.
- Needham analyst Ryan Koontz reiterated a Buy rating and a $235 price target.
Check out other analyst stock ratings.
Rosenblatt Securities: Coherent's stock came under pressure as its revenue growth and margin expansion in the fiscal second quarter were less impressive than that of Lumentum Holdings Inc (NASDAQ:LITE), Genovese said in a note. The company's results were solid, and the outlook for the fiscal third quarter was strong, he added.
"The company is executing on its plan to increase internal indium phosphide (InP) capacity by 100% in CY26 using 6-inch wafers," the analyst wrote. This should enable Coherent improve revenue and margins over the next several quarters, he further stated.
Needham: Coherent reported revenue of $1.69 billion, up 18% year-on-year and 7% sequentially, topping the consensus of $1.64 billion, Koontz said. The company's non-GAAP earnings came in at $1.29 per share, above the consensus of $1.21 per share, he added.
Coherent execution seems to be "steadily improving, including key fab capacity expansions to meet hypergrowth AI/Cloud capex demand," the analyst wrote, while adding that its growth "lags super-cycle expectations."
Management provided strong guidance for the fiscal third quarter, with revenue in a range of $1.70 billion-$1.84 billion, with the midpoint being 3% higher than the consensus of $1.71 billion, he further stated.
COHR Price Action: Coherent shares were down 3.16% at $204.34 at the time of publication on Thursday, according to Benzinga Pro data.
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