Coherent Corp. (COHR) closed Friday's session with a significant 8.8% gain, finishing at $227.68. The advance marked a sharp recovery from recent volatility, driven by positive developments on both the operational and analytical fronts.
State Support and Analyst Optimism
The Texas government awarded the company a $14.1 million semiconductor grant to accelerate its indium phosphide wafer manufacturing initiative in Sherman. State officials linked the project to over $154 million in capital investment. Following the company's latest quarterly report, which showed a 17% year-over-year revenue increase to $1.69 billion, analysts at JPMorgan and Stifel raised their price targets. JPMorgan lifted its target to $245 from $215, while Stifel increased its to $235 from $220, both maintaining positive ratings.
Financial Performance and Outlook
Management cited robust demand in datacenter and communications markets. For the upcoming March quarter, Coherent provided revenue guidance between $1.70 billion and $1.84 billion, with projected non-GAAP earnings per share in the range of $1.28 to $1.48. The company anticipates its non-GAAP gross margin will be between 38.5% and 40.5%.
The stock experienced considerable swings recently, trading between $175 and $234 in the days surrounding its earnings report. As a key supplier for data-center networking hardware, Coherent's performance is often viewed as a proxy for AI and infrastructure spending trends. The company is scheduled to participate in upcoming industry events, including SEMICON Korea and OFC, which may provide further catalysts.