Barclays Raises Coherent (COHR) PT to $90, Cites AI Spend as Key Growth Driver

On Wednesday, Barclays analyst Tom O’Malley raised the price target on Coherent Corp. (NYSE:COHR) to $90 from $80, while maintaining an Overweight rating.

This adjustment follows Coherent’s recent analyst and investor day, where the company presented a new financial model and a positive assessment of its end markets. However, O’Malley noted that Coherent did not highlight any transformational portfolio optimizations.

A row of precision industrial lasers in action, cutting the most intricate of shapes.

O’Malley believes that Coherent’s upside will largely depend on continued robust spending in AI. Coherent reported record revenue of $1.5 billion for FQ3 2025, which marked a 4% sequential increase and a 24% year-over-year increase. The company’s Networking segment’s revenue saw a 10% sequential and 45% year-over-year increase, which was primarily driven by strong demand for AI datacenter-related optical transceivers and components.

For FQ4 2025, Coherent expects revenue to be between $1.425 and $1.575 billion. Despite positive momentum, the company anticipates a cautious near-term view on industrial market demand due to macroeconomic uncertainties. The company also incurred $74 million in restructuring costs during the FQ3 related to portfolio optimization and workforce reductions. Coherent Corp. (NYSE:COHR) develops, manufactures, and markets engineered materials, optoelectronic components & devices, and optical & laser systems for use in the global industrial, communications, electronics, and instrumentation markets.

While we acknowledge the potential of COHR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than COHR and that has 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.