JP Morgan Boosts Coherent Price Target to $127, Outperforming Peers

JP Morgan raised Coherent's (COHR) price target to $127, a 27% increase, maintaining an "Overweight" rating. Analyst Samik Chatterjee remains bullish on the company's future growth prospects. The average one-year price target is $99.33, with a high estimate of $120.00 and a low estimate of $77.00. The estimated GF Value for Coherent Corp in one year is $66.45, suggesting a downside of 34.14% from the current price.

Title: JP Morgan Raises Price Target for Coherent (COHR) to $127

July 2, 2025 - JP Morgan has raised its price target for Coherent (COHR) to $127, a significant 27% increase from the previous target of $100. The investment bank maintains an "Overweight" rating on the stock, reflecting its bullish stance on the company's future growth prospects. The adjustment was led by analyst Samik Chatterjee, who remains confident in Coherent's market potential [1].

The average one-year price target, as forecasted by 19 analysts, stands at $99.33, with a high estimate of $120.00 and a low estimate of $77.00. This suggests an upside of 1.55% from the current price of $100.90. The consensus recommendation from 22 brokerage firms indicates an "Outperform" status, further underscoring the positive sentiment surrounding Coherent [2].

GuruFocus estimates the GF Value for Coherent Corp in one year to be $66.45, suggesting a downside of 34.14% from the current price of $100.895. The GF Value is calculated based on historical multiples, past business growth, and future performance estimates [3].

Coherent Corp reported a record revenue of $1.5 billion for the fiscal third quarter, marking a 4% sequential increase and a 24% year-over-year growth. The company achieved a non-GAAP gross margin of 38.5%, up sequentially and year-over-year. Additionally, Coherent introduced several new products and technologies, showcasing its innovation and technological breadth. The company also paid down $136 million in debt during the quarter, strengthening its balance sheet and reducing debt leverage to 2.1 times [4].

However, Coherent is taking a cautious near-term view on industrial market demand due to macroeconomic uncertainties. The laser segment saw a 3% sequential decrease in revenue, and the materials segment experienced a 3% sequential and 1% year-over-year decline in revenue due to softness in the consumer electronics market. The company's guidance for the fourth quarter indicates potential pressure on gross margins, with expectations set between 37% and 39% [4].

Overall, the market's positive outlook on Coherent is evident through the raised price target and strong analyst ratings. However, investors should remain vigilant about potential headwinds in specific market segments and macroeconomic conditions.

References
[1] https://www.gurufocus.com/news/2985723/jp-morgan-raises-price-target-for-coherent-cohr-to-127-cohr-stock-news
[2] https://www.gurufocus.com/news/2983579/coherent-cohr-price-target-raised-by-jpmorgan-amid-cloud-spending-optimism-cohr-stock-news
[3] https://www.tipranks.com/stocks/cohr/forecast
[4] https://www.gurufocus.com/news/2983579/coherent-cohr-price-target-raised-by-jpmorgan-amid-cloud-spending-optimism-cohr-stock-news