UPDATE: Goldman Sachs Upgrades Coherent (COHR) to Buy

(updating comment)

Goldman Sachs analyst Brian lee upgraded Coherent (NASDAQ: COHR) from Neutral to Buy with a price target of $147.00 (from $154.00).

The analyst comments "While COVID-19 uncertainty provides some risk to the trajectory of the capex cycle, we see a structural shift to OLED (away from LCD) driving a tailwind for spending through the next several years: case in point, while smartphone volumes are expected by GS to be sluggish in
2020-2021, volumes for OLED units are still slated to grow, 5G provides another tailwind and diversification in China display makers will further buoy OLED spending trends. Additionally, with a steady and growing services business and a dominant supplier position driving margin stability through the cycle, we see the pullback in shares (down 40% since peaking in January vs. S&P 500 -17%) as being overdone and already reflecting a multi-quarter pushout in capex expectations, despite recent bookings momentum that positions COHR for a 2H20 inflection in revenue."

For an analyst ratings summary and ratings history on Coherent click here. For more ratings news on Coherent click here.

Shares of Coherent closed at $110.90 yesterday.

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