Coherent Stock Soars As Mitsubishi Electric, DENSO Pour In $1B - Here's More
Portfolio Pulse from Nabaparna Bhattacharya
Coherent Corp. (NYSE:COHR) has secured a $1 billion investment from Mitsubishi Electric Corp. (OTC:MIELF) and DENSO CORPORATION (OTC:DNZOF) for its silicon carbide business. Each company will invest $500 million for a 12.5% non-controlling ownership interest. The deal will increase Coherent's free cash flow and provide greater financial and operational flexibility. Coherent will also establish long-term supply agreements with DENSO and Mitsubishi Electric.
October 10, 2023 | 12:02 pm
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POSITIVE IMPACT
Coherent Corp. has received a significant investment, which will increase its free cash flow and provide greater financial flexibility.
The $1 billion investment will provide Coherent with increased financial and operational flexibility, which could positively impact its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
DENSO CORPORATION has invested $500 million in Coherent's silicon carbide business.
DENSO's investment in Coherent could potentially yield long-term benefits, but the immediate impact on its stock price is uncertain.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Mitsubishi Electric Corp. has invested $500 million in Coherent's silicon carbide business.
Mitsubishi Electric's investment in Coherent could potentially yield long-term benefits, but the immediate impact on its stock price is uncertain.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50