Oppenheimer Favorably Views Coherent, Ciena, and Lumentum in Optical Networking
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 22 2026
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.
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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: 401.930
Low
170.00
Averages
238.18
High
300.00
Current: 401.930
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.
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- Revenue Growth: In fiscal 2025, Coherent's revenue rose by 23%, primarily driven by data centers upgrading their infrastructure to support the latest generative AI applications, with analysts projecting a 30% CAGR in revenue through fiscal 2028.
- Technological Innovation: The introduction of ultra-fast 800G, 1.6T, and next-generation 3.2T optical technologies has positioned Coherent's optical business as a core growth driver, fueling its expansion in the AI market.
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