Rosenblatt Reiterates Buy Rating on Coherent (COHR)

Rosenblatt analyst Mike Genovese reiterated a Buy rating and $95.00 price target on Coherent (NYSE: COHR).

The analyst comments "We found Coherent's messaging at its Analyst & Investor Day to be spot on. The company is the end-to-end tech leader in Photonics technologies, powering innovations on both the Data Center & Communications and Industrial sides of the business. Photonics is gaining content share in Networking as speeds increase, and across industrial end markets as automation and miniaturization rise. Coherent's CEO, Jim Anderson, made this point especially succinctly when he talked about joining the company a year ago for this very reason, and making the move from running a well respected semiconductor company. COHR underperformed a bit Wednesday. We attribute it to the stock acting well for several weeks into the event and Jim's Anderson's style to under promise and over deliver. The main "disappointment" Wednesday seems to be the lack of a specific update on new non-core business and asset exits or divestitures. Coherent reminded us that it exited 5 unprofitable product lines and 9 facilities in FY25, and said more is in progress. Investors were likely hoping for a concrete look at the exit pipeline. But, Jim Anderson's style is to execute first and talk specifics with investors later, and we appreciate the style. We are even okay with Coherent providing less revenue segmentation in FY26, as it will be moving to just two segments from three, because we have a lot of confidence in him as a manager. We also like the relatively new CFO, Sherri Luther, and trust her to focus on the company's priorities of driving revenue growth, expanding margins, being efficient with opex, and capital allocation with an emphasis on deleveraging. Put together, the market growth and target margins numbers given at the analyst day suggest Coherent should more or less double operating profit in four years, pointing to $10 to $12 in EPS power over this time frame."

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 $78.25 yesterday.

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