Coherent (COHR) PT Raised to $330 at Needham

Needham analyst Ryan Koontz raised the price target on Coherent (NYSE: COHR) to $330.00 (from $235.00) while maintaining a Buy rating.

The analyst comments "Deal Dynamics. We spoke with COHR management after the announcement, who highlighted its purchase commitments (1) cover multiple products beyond high-powered lasers; (2) are incremental to orders COHR discussed on its 2QFY26 earnings call; and (3) begin contributing to Revenue in 2027 and secure NVDA supply through 2030. We see this move solidifying the COHR position in the CPO industry including CW lasers and expect to hear more about additional products at GTC in two weeks. Capacity. COHR's 6-inch InP fab capabilities are expected to rapidly scale laser capacity, more than the doubling 2025 capacity by end of 2026. CPO Product. COHR alluded to supplying multiple CPO products beyond high-powered lasers, but remain tight-lipped on additional products until NVDA's GTC event and OFC in two weeks. COHR has a much larger market share in transceiver modules potentially at risk with CPO, but given CPO economics COHR should offset cannibalization, plus its scale-up CPO should prove a larger and more realistic opportunity, replacing copper with optical."

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