UPDATE: Stifel Resumes Coherent (COHR) at Hold
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Stifel analyst Patrick J. Ho resumes coverage on Coherent (NASDAQ: COHR) with a Hold rating and a price target of $270.00.
The analyst comments "We are resuming coverage of Coherent with a Hold rating on the shares and a $270 target price, which reflects the II-VI (IIVI, SU, $60.59) acquisition price. While we have argued that there may be other “better fits” for Coherent, we acknowledge that there are many synergies, both cost and revenue. We believe this deal brings greater diversification and long-term accretion potential for II-VI, and this price (which included a multi-entity bidding war) rewards Coherent shareholders. Several regulatory agencies have provided their approval already, and the two remaining countries that have not yet provided their opinions are South Korea and China. We do not see any issues with South Korea (as a key OLED equipment supplier is a Coherent customer), but admittedly, we have concerns over China. Objectively, there should be no concerns, but geopolitical reasons could stall the approval process (see the recent Applied Materials-Kokusai deal collapse)."
Shares of Coherent closed at $253.12 yesterday.
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