Oppenheimer Favorably Views Coherent, Ciena, and Lumentum in Optical Networking
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: seekingalpha
- Positive Market Outlook: Oppenheimer analysts highlight Coherent, Ciena, and Lumentum as favorable in the optical networking sector, particularly Coherent, which is expected to benefit from faster networking standard cycles, driving company performance growth.
- Accelerated Technological Advancement: Analysts note that as compute performance scales quadratically, the linear scaling of AI networking will accelerate, enhancing profitability for related companies and further driving valuation increases.
- Valuation and Profit Improvement: Despite current valuations being at multi-year highs, Oppenheimer believes that key suppliers leveraging their IP portfolios against increasingly complex technological demands will lead to profitability improvements and valuation expansion.
- Consistent Buy Ratings: Oppenheimer maintains Buy ratings on Coherent, Ciena, and Lumentum, with positive earnings revisions expected for LITE and CIEN, reflecting strong confidence in the optical networking market.
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: 197.760
Low
113.00
Averages
175.92
High
220.00
Current: 197.760
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.
