Coherent (COHR) Gets Higher Price Target from Morgan Stanley on Bullish Optical Markets Forecast

Coherent Corp. (NYSE:COHR) is one of 15 stocks with the biggest hedge fund momentum, after gaining 29 hedge fund holders during the fourth quarter of 2025. On February 23, Morgan Stanley analyst Meta Marshall raised the firm’s price target on Coherent Corp. (NYSE:COHR) to $250 from $200, while keeping an Equal Weight rating on the shares. According to the analyst, traditional networks are about to reach their limits, leading to the adoption of new optical technologies that could add $23 billion to the total addressable market and expand the optical products industry to about $90 billion.

Meanwhile, on February 9, BofA raised its price target on Coherent Corp. (NYSE:COHR) to $250 from $230 and kept its Neutral rating on the shares. The analyst expects capital expenditure to be $748 billion and $869 billion in calendar years 2026 and 2027, respectively, representing 56% and 16% year-over-year growth, respectively. Notably, the analyst also raised price targets for a number of names exposed to the AI capital expenditure buildout.

Coherent Corp. (NYSE:COHR) engages in the development, refinement, manufacturing, and marketing of engineered materials, opto-electronic components and devices, and lasers for use in the industrial, communications, electronics, and instrumentation markets.

While we acknowledge the potential of COHR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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