Coherent price target raised to $108 from $90 at BofA

BofA analyst Vivek Arya raised the firm’s price target on Coherent to $108 from $90 and keeps a Buy rating on the shares. The firm sees a path towards about $6 in calendar year 2026 pro-forma EPS for Coherent, which it notes is 50% and 33%, respectively, above current consensus and the BofA forecast of $4.50 and $4.10. The firm’s scenario analysis suggests Coherent’s total sales could grow at a faster 14%-17% compound annual growth rate from calendar 2024-26, well-above the firm’s 11% current forecast, driven by maintaining its 20%-25% share in AI optical transceivers and a cyclical recovery in non-AI markets, the analyst explains. “While visibility is lower here,” the scenario is still more inline with other semiconductor peers, the analyst added.