Coherent downgraded to Neutral from Buy at B. Riley

B. Riley downgraded Coherent (COHR) to Neutral from Buy with an unchanged price target of $86. The firm cites valuation for the downgrade with the shares up 142% year-to-date. Riley’s latest checks indicate that Nvidia (NVDA) may have added another supplier for 1.6T, which it believes is Eoptolink. As such, Nvidia’s 1.6T allocations will be in question between incumbents in Coherent, Innolight, Fabrinet (FN) and a newcomer in Eoptolink, the analyst tells investors in a research note. The firm believes “there isn’t much room for an error” with Coherent at these valuation levels.