Coherent price target raised to $136 from $106 at Citi

Citi analyst Papa Sylla raised the firm’s price target on Coherent (COHR) to $136 from $106 and keeps a Buy rating on the shares following a transfer of analysts. The firm says that with its continued artificial intelligence sales and new management’s focus on margin expansion and debt reduction, it expects Coherent to “move to the next phase of its journey,” resulting to 40% non-GAAP gross margin company with a $5 earnings per share power by fiscal 2026. It believes the Street is still underestimating Coherent’s AI sales and its new management ability to quickly deliver on its goals.