Coherent Sees Growth In The Data Center Market; Exits Non-Core Businesses

2025-06-02 17:55:46 ET

Summary

• I recommend COHR as a BUY with a $105 price target, driven by robust data center and AI infrastructure growth.
• Coherent is focusing on high-growth markets, expanding indium phosphide capacity, and sunsetting non-core assets to optimize its portfolio.
• Strong financial discipline is evident with debt reduction, inventory management, and restructuring, positioning Coherent for margin expansion.
• Coherent may face an indirect impact from tariffs, particularly in the OLED market, but Coherent’s global footprint should mitigate direct exposure.

Coherent ( COHR ) is moving into a position of strength as management focuses the organization on growth markets while sunsetting non-core assets. With capital investments for data center capacity expected to continue to expand throughout the end of the decade, Coherent’s market may grow at an increased rate, particularly as the hyperscalers scale 800G transceivers and inevitably adopt 1.6T....

Read the full article on Seeking Alpha

For further details see: