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Coherent profitability a concern, says BofA

Coherent profitability a concern, says BofA

BofA keeps a neutral rating and $35 price target on Coherent after the company’s Communications Market presentation. The company is in position to certainly see some AI demand benefits, supplying components and transceivers enabling data center connectivity within a network, but structural issues remain around telecom inventory digestion, the analyst tells investors in a research note, adding that the firm remains “concerned” with Coherent’s profitability.

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