Bain Capital Plans to Sell $2.3 Billion of Coherent Shares
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy COHR?
Source: seekingalpha
- Share Sale Plan: Bain Capital is seeking to sell up to $2.3 billion of Coherent shares, involving approximately 9.4 million shares priced between $237.50 and $240 each, reflecting a discount of up to 2% from Monday's closing price, indicating a strategic reduction in its stake in the laser equipment manufacturer.
- Market Leadership Role: Bank of America is leading the share sale as the primary underwriter, highlighting its significant position in the capital markets and reflecting Bain Capital's strategic adjustments and market timing.
- Future Growth Expectations: Despite facing downward guidance pressures, analysts still anticipate Coherent to achieve double-digit revenue growth in fiscal 2027, indicating market confidence in its long-term growth potential.
- Investor Focus: This share sale may prompt investors to reassess Coherent's future performance, especially with its upcoming earnings report, where the market will closely monitor signals of growth acceleration in the second quarter of 2026.
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Analyst Views on COHR
Wall Street analysts forecast COHR stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for COHR is 175.92 USD with a low forecast of 113.00 USD and a high forecast of 220.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
8 Buy
5 Hold
0 Sell
Moderate Buy
Current: 227.680
Low
113.00
Averages
175.92
High
220.00
Current: 227.680
Low
113.00
Averages
175.92
High
220.00
About COHR
Coherent Corp., specializing in materials, networking, and lasers, is a vertically integrated manufacturing company that develops, manufactures, and markets engineered materials, optoelectronic components and devices, and lasers for use in the industrial, communications, electronics, and instrumentation markets. Its segments include Networking, Materials and Lasers. The Networking segment leverages its compound semiconductor technology platforms and knowledge of end-user applications for its key end markets to deliver differentiated components and subsystems. The Materials segment includes engineered materials and optoelectronic devices, such as those based on zinc selenide (ZnSe), zinc sulfide (ZnS), gallium arsenide (GaAs), indium phosphide (InP), gallium antimonide (GaSb), and silicon carbide (SiC). The Lasers segment's lasers and optics products serve industrial customers in semiconductor and display capital equipment, precision manufacturing, and aerospace & defense, and others.
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.
Bain Capital Plans to Sell $2.3 Billion of Coherent Shares
- Share Sale Plan: Bain Capital is seeking to sell up to $2.3 billion of Coherent shares, involving approximately 9.4 million shares priced between $237.50 and $240 each, reflecting a discount of up to 2% from Monday's closing price, indicating a strategic reduction in its stake in the laser equipment manufacturer.
- Market Leadership Role: Bank of America is leading the share sale as the primary underwriter, highlighting its significant position in the capital markets and reflecting Bain Capital's strategic adjustments and market timing.
- Future Growth Expectations: Despite facing downward guidance pressures, analysts still anticipate Coherent to achieve double-digit revenue growth in fiscal 2027, indicating market confidence in its long-term growth potential.
- Investor Focus: This share sale may prompt investors to reassess Coherent's future performance, especially with its upcoming earnings report, where the market will closely monitor signals of growth acceleration in the second quarter of 2026.
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Arnhold LLC Increases Stake in Axalta Coating Systems
- Increased Holdings: According to an SEC filing dated February 9, Arnhold LLC aggressively increased its stake in Axalta Coating Systems from 236,419 shares to 500,700 shares during the fourth quarter, indicating confidence in the company's future performance.
- Value Appreciation: As of December 31, Arnhold's position in Axalta was valued at $16.2 million, up $9.4 million from $6.8 million on September 30, reflecting optimistic expectations for potential returns from the stock.
- Asset Allocation Insight: Axalta represents 1.2% of Arnhold's reported AUM, and while it does not rank among the top five holdings, the increase in shares suggests a sustained interest in the sector.
- Market Performance Comparison: Despite Axalta's stock declining by 11.1% over the past year, trailing the S&P 500's 15.4% return, Arnhold's continued investment indicates a belief in the company's future market performance, potentially leading to strategic adjustments in their investment approach.
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Arnhold Increases Axalta Holdings to 500,700 Shares
- Share Acquisition: Arnhold purchased 264,281 shares of Axalta in Q4, increasing its total holdings to 500,700 shares valued at $16.2 million, indicating confidence in Axalta's future performance.
- Asset Allocation: As of December 31, Axalta represented 1.2% of Arnhold's reported $1.3 billion AUM, highlighting its significance within the investment portfolio.
- Market Performance: Axalta's stock has declined by 11.1% over the past year, underperforming the S&P 500's 15.4% return, raising concerns about its future outlook in the market.
- Investment Strategy: Despite increasing its stake in Axalta, the Motley Fool analyst team did not include it among the best stocks to buy now, suggesting investors should exercise caution before investing.
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Dow Jones Index Hits Record Highs Over 50,000 Points
- Dow Jones Surge: On Friday, the Dow Jones index surged over 1,200 points during trading, closing at 50,115.67, marking a historic high that signifies a strong market recovery and may attract more investors.
- Strong Performance of S&P 500 and Nasdaq: The S&P 500 rose by 1.97% to close at 6,932.30, while the Nasdaq Composite jumped 2.18% to 23,031.21, indicating a robust rebound in tech and large-cap stocks, further boosting market confidence.
- Analyst Rating Discrepancies: Despite daily new stock picks from Wall Street analysts, the wide variance in analyst ratings and price targets leaves investors confused about which analyst opinions to trust, potentially impacting the effectiveness of investment decisions.
- Market Sentiment Recovery: The Dow's milestone of surpassing 50,000 points reflects optimistic expectations for economic recovery, which could lead to increased capital inflow into the stock market, thereby driving further overall market gains.
See More
COHR Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for the $195.00 put option is $18.20, and if an investor sells to open this contract, they commit to buying the stock at $195.00, effectively lowering their cost basis to $176.80, which is a 1% discount from the current price of $197.04, making it attractive for potential COHR buyers.
- Yield Potential Analysis: Should the put option expire worthless, it would yield a 9.33% return, equating to an annualized yield of 68.19%, showcasing the YieldBoost potential of this contract, appealing to investors seeking stable returns.
- Call Option Returns: The $205.00 call option has a current bid of $20.20, and if an investor buys COHR shares at $197.04 and sells this call, they could achieve a total return of 14.29% if the stock is called away at expiration, highlighting the attractiveness of this strategy.
- Risk-Reward Consideration: The $205.00 call option has a 47% chance of expiring worthless, in which case the investor retains both the stock and the premium collected, providing an additional return of 10.25%, or 74.90% annualized, emphasizing the need for investors to weigh risks and rewards when selecting options.
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Coherent Corp Reports Strong Quarterly Results Amid Analyst Upgrades
- Revenue Growth: Coherent Corp reported quarterly revenue of $1.69 billion, an 18% year-over-year increase and a 7% sequential rise, surpassing the market expectation of $1.64 billion, indicating strong market performance.
- Profitability Improvement: The non-GAAP earnings per share came in at $1.29, exceeding the consensus estimate of $1.21, demonstrating significant progress in cost control and operational efficiency.
- Analyst Rating Upgrades: Analyst Mike Genovese from Rosenblatt Securities raised the price target from $220 to $300, while Needham maintained a Buy rating with a $235 target, reflecting market confidence in the company's future growth.
- Capacity Expansion Plan: The company plans to increase its internal indium phosphide (InP) capacity by 100% by 2026, which will help enhance revenue and margins over the next several quarters to meet the rapid growth demands in AI and cloud computing.
See More
Bain Capital Plans to Sell $2.3 Billion of Coherent Shares
- Share Sale Plan: Bain Capital is seeking to sell up to $2.3 billion of Coherent shares, involving approximately 9.4 million shares priced between $237.50 and $240 each, reflecting a discount of up to 2% from Monday's closing price, indicating a strategic reduction in its stake in the laser equipment manufacturer.
- Market Leadership Role: Bank of America is leading the share sale as the primary underwriter, highlighting its significant position in the capital markets and reflecting Bain Capital's strategic adjustments and market timing.
- Future Growth Expectations: Despite facing downward guidance pressures, analysts still anticipate Coherent to achieve double-digit revenue growth in fiscal 2027, indicating market confidence in its long-term growth potential.
- Investor Focus: This share sale may prompt investors to reassess Coherent's future performance, especially with its upcoming earnings report, where the market will closely monitor signals of growth acceleration in the second quarter of 2026.
See More
Arnhold LLC Increases Stake in Axalta Coating Systems
- Increased Holdings: According to an SEC filing dated February 9, Arnhold LLC aggressively increased its stake in Axalta Coating Systems from 236,419 shares to 500,700 shares during the fourth quarter, indicating confidence in the company's future performance.
- Value Appreciation: As of December 31, Arnhold's position in Axalta was valued at $16.2 million, up $9.4 million from $6.8 million on September 30, reflecting optimistic expectations for potential returns from the stock.
- Asset Allocation Insight: Axalta represents 1.2% of Arnhold's reported AUM, and while it does not rank among the top five holdings, the increase in shares suggests a sustained interest in the sector.
- Market Performance Comparison: Despite Axalta's stock declining by 11.1% over the past year, trailing the S&P 500's 15.4% return, Arnhold's continued investment indicates a belief in the company's future market performance, potentially leading to strategic adjustments in their investment approach.
See More
Arnhold Increases Axalta Holdings to 500,700 Shares
- Share Acquisition: Arnhold purchased 264,281 shares of Axalta in Q4, increasing its total holdings to 500,700 shares valued at $16.2 million, indicating confidence in Axalta's future performance.
- Asset Allocation: As of December 31, Axalta represented 1.2% of Arnhold's reported $1.3 billion AUM, highlighting its significance within the investment portfolio.
- Market Performance: Axalta's stock has declined by 11.1% over the past year, underperforming the S&P 500's 15.4% return, raising concerns about its future outlook in the market.
- Investment Strategy: Despite increasing its stake in Axalta, the Motley Fool analyst team did not include it among the best stocks to buy now, suggesting investors should exercise caution before investing.
See More
Dow Jones Index Hits Record Highs Over 50,000 Points
- Dow Jones Surge: On Friday, the Dow Jones index surged over 1,200 points during trading, closing at 50,115.67, marking a historic high that signifies a strong market recovery and may attract more investors.
- Strong Performance of S&P 500 and Nasdaq: The S&P 500 rose by 1.97% to close at 6,932.30, while the Nasdaq Composite jumped 2.18% to 23,031.21, indicating a robust rebound in tech and large-cap stocks, further boosting market confidence.
- Analyst Rating Discrepancies: Despite daily new stock picks from Wall Street analysts, the wide variance in analyst ratings and price targets leaves investors confused about which analyst opinions to trust, potentially impacting the effectiveness of investment decisions.
- Market Sentiment Recovery: The Dow's milestone of surpassing 50,000 points reflects optimistic expectations for economic recovery, which could lead to increased capital inflow into the stock market, thereby driving further overall market gains.
See More
COHR Options Contract Analysis and Investment Opportunities
- Put Option Appeal: The current bid for the $195.00 put option is $18.20, and if an investor sells to open this contract, they commit to buying the stock at $195.00, effectively lowering their cost basis to $176.80, which is a 1% discount from the current price of $197.04, making it attractive for potential COHR buyers.
- Yield Potential Analysis: Should the put option expire worthless, it would yield a 9.33% return, equating to an annualized yield of 68.19%, showcasing the YieldBoost potential of this contract, appealing to investors seeking stable returns.
- Call Option Returns: The $205.00 call option has a current bid of $20.20, and if an investor buys COHR shares at $197.04 and sells this call, they could achieve a total return of 14.29% if the stock is called away at expiration, highlighting the attractiveness of this strategy.
- Risk-Reward Consideration: The $205.00 call option has a 47% chance of expiring worthless, in which case the investor retains both the stock and the premium collected, providing an additional return of 10.25%, or 74.90% annualized, emphasizing the need for investors to weigh risks and rewards when selecting options.
See More
Coherent Corp Reports Strong Quarterly Results Amid Analyst Upgrades
- Revenue Growth: Coherent Corp reported quarterly revenue of $1.69 billion, an 18% year-over-year increase and a 7% sequential rise, surpassing the market expectation of $1.64 billion, indicating strong market performance.
- Profitability Improvement: The non-GAAP earnings per share came in at $1.29, exceeding the consensus estimate of $1.21, demonstrating significant progress in cost control and operational efficiency.
- Analyst Rating Upgrades: Analyst Mike Genovese from Rosenblatt Securities raised the price target from $220 to $300, while Needham maintained a Buy rating with a $235 target, reflecting market confidence in the company's future growth.
- Capacity Expansion Plan: The company plans to increase its internal indium phosphide (InP) capacity by 100% by 2026, which will help enhance revenue and margins over the next several quarters to meet the rapid growth demands in AI and cloud computing.
See More
