Craig-Hallum Maintains “Buy” Rating on Coherent (COHR) With $190 PT

With significant hedge fund interest, Coherent, Inc. (NASDAQ:COHR) secures a spot on our list of the 11 best AI infrastructure stocks to buy right now.

Craig-Hallum Maintains “Buy” Rating on Coherent (COHR) With $190 PT

On November 10, 2025, Craig-Hallum’s Richard Shannon reiterated his “Buy” rating on Coherent, Inc. (NASDAQ:COHR) with a $190 price target.

Previously, on November 7, 2025, William Blair’s Jed Dorsheimer reiterated his “Hold” rating on Coherent, Inc. (NASDAQ:COHR). The analyst cited the company’s strong Q1 2026 results, highlighting its increasing role in the AI technology stack amid improving transceiver supply conditions.

The analyst believes that the company’s new products, including the 400 mW CW laser and next-generation 2D VCSEL array, which enhance its position in AI-driven data centers, are already factored into its valuation. Dorsheimer also pointed toward improved margins and earnings performance, which benefited from Coherent, Inc. (NASDAQ:COHR)’s divestiture of its Aerospace & Defense unit.

Earlier, Coherent, Inc. (NASDAQ:COHR) released its Q1 2026 results on November 5, 2025, reporting $1.58 billion in revenue, up 17% YoY. Non-GAAP EPS came in at $1.16, an increase from $1.00 in the prior quarter. Despite record-level bookings, management highlighted ongoing supply constraints in indium phosphide lasers, limiting data center shipment capacity.

The company’s CEO, James Anderson, discussed plans to double indium phosphide capacity across its Texas and Sweden sites, as well as to advance its 6-inch production line to meet the growing demand for AI optical components. Furthermore, Coherent, Inc. (NASDAQ:COHR) continues its efforts to streamline operations, having exited 23 sites over the past five quarters and expanded module production in Asia to enhance delivery efficiency.

Coherent, Inc. (NASDAQ:COHR) serves the industrial, communications, and electronics markets by developing, manufacturing, and marketing engineered materials, optoelectronic components, and laser systems.

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 this cheapest AI stock.

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