11 Most Promising Long-Term Stocks According to Analysts

3. Coherent Corp. (NYSE:COHR)

10-Year Revenue CAGR: 22.04%

Number of Hedge Fund Holders: 90

Average Upside Potential as of April 21: 90.08%

Coherent Corp. (NYSE:COHR) develops, manufactures, and markets engineered materials, optoelectronic components & devices, and optical & laser systems and subsystems. It operates through three segments: Networking, Materials, and Lasers.

Due to the strong adoption of its 800G transceivers, Coherent Corp. (NYSE:COHR) made record FQ2 2025 datacom revenue. This was a 79% year-over-year increase. To support this growth, indium phosphide production tripled year-over-year. This is a semiconductor material used in lasers and other optoelectronic devices, which is required for high-speed data transmission in applications like AI-driven data centers.

On March 24, Raymond James analyst Simon Leopold upgraded the stock from Outperform to Strong Buy but lowered the price target to $91 from $110 after insights from NVIDIA’s GTC and Corning’s analyst meetings. The firm revised its datacom optical model and forecasted $22.2 billion in AI backend transceiver sales by 2030, with a ~30% annual growth rate. Its 2027 estimate for AI backend revenue increased to $7.5 billion from $7.1 billion.

Diamond Hill Select Strategy stated the following regarding Coherent Corp. (NYSE:COHR) in its Q4 2024 investor letter:

“Among our other top Q4 contributors were Amazon, WESCO and Coherent Corp. (NYSE:COHR). Coherent is a global leader in materials, networking and lasers for the industrial, communications, electronics and instrumentation markets. Demand for optical transceivers used in AI datacenter buildouts has been robust, benefiting Coherent and resulting in higher earnings and new orders which suggest momentum is likely to continue.”