COHR Stock Gets A Wave Of Price Target Hikes After ‘Beat And Raise’ Q4 — Needham Sees Coherent As 'Major AI Infrastructure Beneficiary'

• Needham added that Coherent is seeing improving execution amid high demand and even higher investor expectations.
• Raymond James said management addressed CPO timing and China laser concerns, while the more than $3 billion fiscal 2027 sales target offers “meaningful upside” versus consensus.
• Rosenblatt was the most bullish, raising its target to $500 from $425 and saying Coherent’s 2027 capacity is “effectively sold out,” with 2028 already being booked.

Coherent Corp. (COHR) drew a wave of price target hikes from Wall Street after the company delivered stronger-than-expected fourth quarter (Q4) results and issued an upbeat outlook.

According to TheFly, analysts at Needham, Raymond James, Rosenblatt, Northland and B. Riley all raised their price targets on Coherent, with Rosenblatt setting the highest target at $500. Analysts pointed to strong AI transceiver demand, accelerating data center sales and improving execution as key drivers behind the revisions.

Coherent shares were down nearly 2% in Thursday’s opening trade.

Wall Street Raises The Bar For COHR

Needham raised its price target on Coherent shares to $420 from $380 and maintained a ‘Buy’ rating. The firm highlighted that Coherent’s data center sales accelerated 24% sequentially as laser supply from the company’s 6-inch fab flowed through to volume transceiver shipments.

Needham added that Coherent is seeing improving execution amid high demand and even higher investor expectations, while continuing to view the company as a “major AI infrastructure beneficiary.”

Raymond James raised its price target to $448 from $435 and maintained a ‘Strong Buy’ rating. The firm said management effectively addressed concerns around co-packaged optics (CPO) timing and China lasers, while the company’s sales target of more than $3 billion by the end of fiscal 2027 offers “meaningful upside” versus consensus.

Analysts at B. Riley also raised their target to $345 from $309 on Coherent shares while keeping a ‘Neutral’ rating on the stock. The firm cited robust data center demand and its more than $3 billion fiscal fourth-quarter 2027 revenue outlook as factors supporting significant earnings upside.

AI Demand Pushes COHR’s Capacity Into 2028

Rosenblatt was the most bullish, raising its price target to $500 from $425 while maintaining a ‘Buy’ rating. Analyst Mike Genovese said Coherent’s 2027 production capacity is “effectively sold out,” with customers already booking capacity for 2028.

Jefferies, meanwhile, raised its price target to $420 from $375 and maintained a ‘Buy’ rating, describing the quarter as “another beat and raise.” The firm said Coherent’s September-quarter outlook points to accelerating data center growth and expects the company to post its first quarter with more than $3 billion in revenue by the end of fiscal 2027.

Northland took a more cautious view, raising its target to $280 from $230 while maintaining a ‘Market Perform’ rating. Analyst Tim Savageaux said upside in Q4  and outlook was driven by strong AI transceiver revenue, but noted that competitive and other risks to pluggable optics “continue to act as a governor on both earnings leverage and valuation.”

COHR CEO Says Coherent Entering FY27 With ‘Significant Momentum’

During a post-earnings call, Coherent CEO Jim Anderson said fiscal 2026 was an “outstanding year” for the company.

He added that Coherent is entering fiscal 2027 with “significant momentum” and expects growth to accelerate significantly. After Coherent posted its first $2 billion revenue quarter, the company now expects to deliver its first quarter with more than $3 billion in revenue by the end of fiscal 2027.

“AI runs on compute, but it scales on optical connectivity,” Anderson said, describing Coherent’s photonic technology platform as foundational to the performance and scalability of AI data centers.

Coherent reported earnings per share (EPS) of $1.74 on revenue of $2.05 billion, compared to expectations of an EPS of $1.62 on revenue of $1.98 billion, according to Fiscal.ai data.

What Retail Traders Think Of COHR Stock

Retail sentiment on Stocktwits around Coherent trended in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.

COHR stock is up 89% year-to-date and 205% over the past 12 months. The S&P 500 ETF Trust (SPY) and the iShares Core S&P 500 ETF (IVV) are up 21% over the past 12 months.

The Vanguard Information Technology Index Fund ETF (VGT) is up 39% during this period, while the State Street Technology Select Sector SPDR ETF (XLK) is up 43%.

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