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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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
NEUTRAL IMPACT
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