SiC Investment Bolsters Value Case For Coherent, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Needham analyst James Ricchiuti reiterated a Buy rating on Coherent Corp (COHR) with a $50 price target. This follows the announcement that DENSO and Mitsubishi Electric will each invest $500 million in COHR's SiC business for a 12.5% stake. The agreement allows COHR to raise up to $500 million from additional partners in the new SiC subsidiary for six months following the close of the transaction in Q1CY24. The $1 billion combined investment in the SiC subsidiary is expected to free up resources for debt reduction.
October 11, 2023 | 7:42 pm
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Coherent Corp's SiC business is set to receive a $1 billion investment from DENSO and Mitsubishi Electric. This investment is expected to free up resources for debt reduction, potentially improving the company's financial health.
The $1 billion investment in Coherent Corp's SiC business by DENSO and Mitsubishi Electric is a significant financial boost. This could free up resources for debt reduction, improving the company's financial health and potentially making it a more attractive investment. This is likely to have a positive impact on the company's stock in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100