On May 29, analyst Vivek Arya of Bank of America Securities reiterated a Buy rating on Coherent Corporation (NYSE:COHR), raising the price target to $92.00 from $80.00.
Arya based the price target increase on the company’s potential for significant growth, updating it after COHR’s 2025 Analyst and Investor Day on May 28 on which it detailed its long-term financial and growth model.
A technician soldering components for frequency control products in a modern electronics lab.
The analyst reasoned that Coherent Corporation has ambitious yet achievable targets, as it is projecting an EPS of $7-$8 by fiscal year 2028. Its GAAP EPS for fiscal Q3 2025 was $0.11, showing a year-over-year improvement of $0.18.
The company supports its EPS projections with its strong market position in a $32 billion data center serviceable addressable market (SAM) by 2030, driven by its supply capabilities and differentiated portfolio.
Arya further reasoned that Coherent Corporation is expected to achieve a 10-15% compound annual growth rate in sales and gross margin improvements of over 42% in the upcoming years. According to him, various drivers position the company for future success, including its strategic focus on high-growth areas such as industrial applications and AI-driven data centers, along with its potential for operating model refinement and cost optimization.
Coherent Corporation develops, refines, manufactures, and markets engineered materials, lasers, and opto-electronic components and devices used in the electronics, communications, industrial, and instrumentation markets. Its operations span the following segments: Networking, Materials, and Lasers.
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