StoneX initiates coverage of Coherent with Buy rating and $425 target
StoneX analyst Cody Acree began coverage of photonics maker Coherent, assigning a Buy rating and a $425 price target. The firm highlighted the company's plan to double its six‑inch indium phosphide capacity in the September quarter and again by the end of 2027, which supports lasers for AI data‑center optics. Management also said revenue from the PhotonLink product line will begin to increase in the fourth quarter of 2026. The stock rose between 5.6% and 7.4% in afternoon trading on the news.
Why it matters
The initiation adds a bullish analyst view and a high price target, which could attract further buying and lift the share price ahead of Coherent's earnings report on November 4. The capacity expansion signals potential revenue growth from AI‑related optical components.
Key facts
- 1Coherent shares jumped 5.6% in the afternoon session after StoneX initiated coverage with a Buy rating and a $425 price target. financialcontent.com
- 2StoneX analyst Cody Acree started coverage of Coherent with a Buy rating and a $425 price target, implying about 103% upside. financialcontent.com
- 3Management targets a doubling of six‑inch indium phosphide capacity in the September quarter and another doubling by the end of 2027. financialcontent.com
- 4Coherent expects revenue from its PhotonLink platform to begin increasing in the fourth quarter of calendar 2026. financialcontent.com
- 5The stock rose 7.4% to a session high of $225.66, up from $209.29. investing.com
- 6Coherent's next earnings report is scheduled for November 4. investing.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.