AI And Industrial Markets To Propel Coherent In Long-Term Recovery, Says Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Needham analyst Jim Ricchiuti reiterated a Buy rating on Coherent Corp. (NYSE:COHR) and nearly doubled the price target to $64 from $33. The company is expected to benefit from long-term recovery of network business and strength in industrial markets, boosted by AI. Coherent's recent MOU with Mitsubishi Electric Corp (OTC:MIELF) and the acquisition of Finisar are also seen as positive factors.
June 20, 2023 | 6:03 pm
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Coherent Corp. (NYSE:COHR) signed an MOU with Mitsubishi Electric Corp (OTC:MIELF) in late May, under which COHR will support Mitsubishi's 200mm SiC manufacturing process. Mitsubishi is investing ~$2 billion in a new facility to produce SiC power devices based on 200 mm technology.
The MOU between Coherent Corp. and Mitsubishi Electric Corp is a positive development for both companies, but the direct short-term impact on Mitsubishi's stock price is uncertain. The partnership may contribute to long-term growth, but its immediate effect on the stock price is unclear.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Needham analyst Jim Ricchiuti reiterated a Buy rating on Coherent Corp. (NYSE:COHR) and nearly doubled the price target to $64 from $33. The company is expected to benefit from long-term recovery of network business and strength in industrial markets, boosted by AI.
The analyst's Buy rating and increased price target indicate a positive outlook for Coherent Corp. The company's core technologies, long-term recovery of network business, strength in industrial markets, and partnerships are expected to drive growth in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100