Wednesday's ETF Movers: IHI, PTF
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 08 2025
0mins
Should l Buy COHR?
Source: NASDAQ.COM
ETF Performance: The Invesco Dorsey Wright Technology Momentum ETF is down approximately 8.3% in Wednesday afternoon trading, underperforming other ETFs.
Weakest Components: Notable declines among its components include Aurora Innovation, which fell by about 9.2%, and Coherent, which decreased by about 4.3%.
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Analyst Views on COHR
Wall Street analysts forecast COHR stock price to fall
13 Analyst Rating
9 Buy
4 Hold
0 Sell
Moderate Buy
Current: 329.890
Low
170.00
Averages
238.18
High
300.00
Current: 329.890
Low
170.00
Averages
238.18
High
300.00
About COHR
Coherent Corp. is a vertically integrated manufacturing company that develops, manufactures, and markets lasers, transceivers, and other optical and optoelectronic devices, modules, and systems, as well as engineered materials, for use in the communications, industrial, instrumentation and electronics markets. Its segments include datacenter & communications, and industrial. Its datacenter & communications segment offers optical transceivers, optical circuit switches, interconnect cables, optical instruments, optoelectronic devices, communication components, and wavelength management products. Its industrial segment offers lasers, machines & systems, components & accessories, optics, laser measurement instruments, ceramics & metal matrix, ion implantation, engineered materials, and wide-bandgap electronics. Its subsidiaries include Finisar Australia Pty Limited, Nufibre PTY LTD, Finisar Brasil Suporte De Vendas LTDA, Coherent Aerospace & Defense, Inc., and Coherent Asia, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Stifel Raises Price Targets for Lumentum, Ciena, and Coherent Ahead of Earnings
- Price Target Increase: Stifel raised price targets for Lumentum, Ciena, and Coherent to $1,100, $585, and $412 respectively, indicating strong confidence in these companies and reflecting optimistic market expectations for the optical networking sector.
- Positive Industry Outlook: Analysts project that the Big Five tech companies' capital expenditures will reach approximately $70.52 billion in 2026, a 67.3% year-over-year increase, suggesting that the AI infrastructure cycle will continue to drive performance improvements for related companies.
- Enhanced Order Visibility: With order visibility extending to 12-18 months, the earnings outlook for Lumentum, Ciena, and Coherent has been further elevated, indicating increased market confidence in their future performance.
- Diverse Growth Drivers: Strategic initiatives such as CIEN's Hyper-Rail and DCOM expansion, LITE's OCS and CPO scaling, and COHR's three-vector expansion framework will provide long-term support for revenue and margin contributions, driving sustained growth for the companies.
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- Photonics Technology Outlook: Shares of Lumentum and Coherent rose by 3% after Rothschild & Co Redburn initiated buy ratings on both companies, with expectations that the demand for optical content in AI data center networking will drive their stock prices higher.
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- Unemployment Rate Stability: The unemployment rate is anticipated to remain steady at 4.3%, suggesting that despite the decrease in job additions, the labor market remains relatively stable, potentially alleviating fears of an economic downturn.
- GDP Growth Situation: The U.S. GDP grew at a seasonally adjusted annualized rate of 2% in the first quarter, higher than the fourth quarter's 0.5% but below the 2.2% estimate, reflecting economic sluggishness that may influence future monetary policy decisions.
- Market Volatility: Despite a strong performance in April, with the S&P 500 and Nasdaq hitting record highs, investors should remain cautious of the upcoming
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- Chip Stocks Decline: Following the OpenAI news, Nvidia and AMD saw declines of over 3% and 4%, respectively, while Arm Holdings plummeted more than 8%, indicating a waning market confidence in AI infrastructure.
- Centene Guidance Raise: Centene's shares surged 12% after it raised its full-year adjusted EPS guidance to over $3.40, surpassing the market consensus of $3.02, reflecting strong performance in the health insurance sector.
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- Price Target Increase: Stifel raised price targets for Lumentum, Ciena, and Coherent to $1,100, $585, and $412 respectively, indicating strong confidence in these companies and reflecting optimistic market expectations for the optical networking sector.
- Positive Industry Outlook: Analysts project that the Big Five tech companies' capital expenditures will reach approximately $70.52 billion in 2026, a 67.3% year-over-year increase, suggesting that the AI infrastructure cycle will continue to drive performance improvements for related companies.
- Enhanced Order Visibility: With order visibility extending to 12-18 months, the earnings outlook for Lumentum, Ciena, and Coherent has been further elevated, indicating increased market confidence in their future performance.
- Diverse Growth Drivers: Strategic initiatives such as CIEN's Hyper-Rail and DCOM expansion, LITE's OCS and CPO scaling, and COHR's three-vector expansion framework will provide long-term support for revenue and margin contributions, driving sustained growth for the companies.
See More
GameStop Proposes $55.5 Billion eBay Acquisition, Shares Surge
- Acquisition Proposal Surge: GameStop's unsolicited offer to acquire eBay for approximately $55.5 billion has led to a nearly 9% premarket surge in eBay's shares, indicating strong market enthusiasm for a potential merger that could create a formidable competitor to Amazon.
- Setbacks and Expectations Gap: Norwegian Cruise Line reported first-quarter earnings of 23 cents per share and $2.33 billion in revenue, both falling short of analyst expectations, resulting in a 5.5% drop in stock price, reflecting operational challenges amid rising fuel costs.
- Photonics Technology Outlook: Shares of Lumentum and Coherent rose by 3% after Rothschild & Co Redburn initiated buy ratings on both companies, with expectations that the demand for optical content in AI data center networking will drive their stock prices higher.
- Strong Food Sector Performance: Tyson Foods saw its shares rise over 2.5% after reporting better-than-expected fiscal second-quarter results, with adjusted earnings of 87 cents per share and revenue of $13.65 billion, demonstrating the company's resilience in a competitive market.
See More
Data Center Spending Bubble Talk Disproven This Quarter
- Capital Expenditure Overview: Alphabet, the parent company of Google, estimates its data center spending for 2023 to be between $180 billion and $190 billion, with its stock price rising from $349 to $385, reflecting a 12% weekly gain that indicates strong market confidence in its cloud business growth.
- Amazon Cloud Services Growth: Amazon anticipates $200 billion in spending, with its stock price increasing from $260 to $268, a weekly gain of 1.6%, as its AWS business achieves a quarterly revenue of $37.6 billion, growing at 28%, marking the fastest growth in 15 quarters.
- Apple's Low Spending Strategy: Apple has allocated only $13 billion for data centers, with its stock price rising from $271 to $280, a weekly gain of 3.4%, and despite relying on Google's Gemini service, it maintains high margins due to its global installed base of 2.5 billion devices.
- Challenges for Microsoft and Meta: Microsoft expects to spend $190 billion, with its stock price declining from $429 to $414, a weekly loss of 2.4%, as Azure grows at 40% but lacks market confidence; Meta plans to increase spending by $10 billion, with its stock price dropping from $670 to $605, a 9.8% weekly loss, facing significant uncertainty.
See More
Analysis of Upcoming U.S. Jobs Report Outlook
- Job Market Expectations: According to FactSet consensus estimates, the U.S. is expected to add only 50,000 jobs in April, significantly lower than March's 178,000, indicating signs of economic slowdown that could impact investor confidence.
- Unemployment Rate Stability: The unemployment rate is anticipated to remain steady at 4.3%, suggesting that despite the decrease in job additions, the labor market remains relatively stable, potentially alleviating fears of an economic downturn.
- GDP Growth Situation: The U.S. GDP grew at a seasonally adjusted annualized rate of 2% in the first quarter, higher than the fourth quarter's 0.5% but below the 2.2% estimate, reflecting economic sluggishness that may influence future monetary policy decisions.
- Market Volatility: Despite a strong performance in April, with the S&P 500 and Nasdaq hitting record highs, investors should remain cautious of the upcoming
See More
Latest Wall Street Rating Updates
- Apple's Positive Outlook: Bank of America reiterates a buy rating on Apple, forecasting that iPhone revenues will exceed expectations in 2026 due to record upgraders and strong gross margins despite commodity pressures, indicating sustained competitiveness in the smartphone market.
- Roblox Demand Slowdown: Bank of America downgrades Roblox to neutral, citing a significant decline in platform demand; while acknowledging its ability to compress development costs, the uncertainty around the timeline for demand recovery may impact its market performance.
- CoreWeave Growth Potential: Citi reiterates CoreWeave as a buy, raising its price target from $126 to $155, estimating a quarterly growth of 35-40% in AI infrastructure, showcasing strong performance across a diversified customer base.
- Hershey's Positive Outlook: TD Cowen upgrades Hershey to buy, expressing confidence that the company will raise its 2026 guidance and return to volume growth in 2027, reflecting strong recovery potential in the confectionery market.
See More
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- Oracle Stock Drop: Oracle's shares fell over 3% after OpenAI missed its user and revenue targets, raising concerns about the sustainability of AI spending and impacting its $300 billion five-year partnership with OpenAI.
- Chip Stocks Decline: Following the OpenAI news, Nvidia and AMD saw declines of over 3% and 4%, respectively, while Arm Holdings plummeted more than 8%, indicating a waning market confidence in AI infrastructure.
- Centene Guidance Raise: Centene's shares surged 12% after it raised its full-year adjusted EPS guidance to over $3.40, surpassing the market consensus of $3.02, reflecting strong performance in the health insurance sector.
- Erasca Stock Plunge: Erasca's stock cratered nearly 50% after reporting a patient death in an early-stage trial, despite analysts viewing the incident as isolated, highlighting investor sensitivity to risks in the biotech sector.
See More
