
Coherent Corp (COHR) Stock Forecast & Price Target
Coherent Corp (COHR) Analyst Ratings
Bulls say
Coherent Corp exhibited strong financial performance, with Data Center revenue experiencing a significant increase of 14% quarter-over-quarter and 36% year-over-year, driven by heightened demand for advanced products. The company also reported an operating margin of 19.9%, which reflects a 40 basis points improvement quarter-over-quarter and a 140 basis points increase year-over-year, attributed to effective cost management and enhanced operating leverage. Furthermore, overall revenue rose by 9% quarter-over-quarter and 22% year-over-year, bolstered by substantial growth in both the Data Center and Communications segments, leading to optimistic forecasts for sustained top-line acceleration moving forward.
Bears say
Coherent Corp faces significant challenges due to persistent average selling price (ASP) declines in its optical products, potentially undermining product innovation and unit growth, which are crucial for maintaining financial strength. Despite revenue forecasts above consensus estimates for F3Q26, the company's reliance on lower-margin transceivers compared to its peers, particularly Lumentum, suggests limited margin expansion and competitive vulnerability amidst rapid technological changes. Furthermore, while Coherent's focus on high-return growth areas is a positive step, the potential negative implications of Co-Packaged Optics on long-term revenue opportunities raise concerns regarding the company's terminal value and overall market position.
This aggregate rating is based on analysts' research of Coherent Corp and is not a guaranteed prediction by Public.com or investment advice.
Coherent Corp (COHR) Analyst Forecast & Price Prediction
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