Why Rosenblatt Still Likes Coherent (COHR) Despite Competitive Pressure

Coherent Corp. (NYSE:COHR) is one of the AI Stocks Making Headlines This Week. On August 14, Rosenblatt lowered the firm’s price target on the stock to $135 from $150 and kept a Buy rating on the shares. The rating affirmation follows Coherent’s fiscal Q4 report.

According to Rosenblatt, the company tends to guide conservatively. However, it does not see any fundamental impairment to the positive thesis following the earnings report.

The firm did acknowledge that competitor Lumentum has gained steam with its stronger near-term performance in laser chip, OCS, and CPO sales categories.

“We would note that Coherent management tends to guide conservatively. We do not think there is a fundamental impairment to the positive thesis. Lumentum has grabbed the momentum with stronger relative near-term performance in laser chip, OCS, and CPO sales. Nevertheless, we like the industry thesis and competitive environment, and think both LITE and COHR will do well.”

Even though Coherent is subject to this competitive pressure, Rosenblatt anticipates it to “catch up in these key AI Optical categories over the course of FY26 and into FY27.” Moreover, it believes both Lumentum and Coherent will execute well in the industry.

Coherent Corp. (NYSE:COHR) is an American manufacturer of optical materials and semiconductors.

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