Raymond James analyst Simon Leopold on Wednesday raised Coherent Corp. (NYSE:COHR)’s stock price target to $96 from $91, while maintaining the Strong Buy rating for its shares.
The revision followed Coherent Corp.’s Analyst and Investor Day earlier in the day, in which the company shared its long-term growth targets that surpassed both Raymond James’ and the broader market’s expectations.
A row of precision industrial lasers in action, cutting the most intricate of shapes.
Coherent Corp.’s management outlined its goals, such as aiming for a gross margin greater than 42% and an operating margin above 24%, indicating that by 2028, the company could achieve an EPS of around $8-9, which will be a substantial increase from forecasts of under $4 in fiscal 2025.
Considering these ambitious targets, Raymond James lifted the stock’s target price to account for the anticipated gross margin expansion and growth in the industrial laser sector.
Moreover, on May 7, Coherent Corp. reported impressive results for the third quarter of fiscal 2025, with revenue increasing 24% year-over-year to $1.5 billion, driven by strong demand for AI-related data centers. Earnings per share were posted at $0.91, beating estimates by five cents.
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