Susquehanna Raises PT to $120, Maintains Positive on Coherent.

Susquehanna Raises PT to $120, Maintains Positive on Coherent.

Susquehanna Financial Group has recently adjusted its price target for Coherent (COHR) to $120, up from its previous target of $100. The firm maintains a Positive rating on the stock, indicating its bullish outlook. This move comes as part of the firm's second-quarter preview focused on the semiconductor sector. Susquehanna expects either in-line or slightly positive results for Coherent, driven by increased demand due to tariff adjustments and the ongoing strength in artificial intelligence. However, the firm cautions that the latter half of the year remains uncertain, suggesting a mixed outlook for investors.

The average one-year price target for Coherent, as forecast by 19 analysts, is $100.54, with a high estimate of $120.00 and a low estimate of $77.00. The average target implies an upside of 0.67% from the current price of $99.88 [1]. The consensus recommendation from 22 brokerage firms is currently 1.9, indicating an "Outperform" status. GuruFocus estimates the GF Value for Coherent to be $66.45 in one year, suggesting a downside of 33.47% from the current price of $99.88 [2].

Coherent Corp reported a record revenue of $1.5 billion for the 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%, showing improvement both sequentially and year-over-year. Coherent introduced several new products and technologies, including three different 1.6T transceiver designs, showcasing its innovation and technological breadth. The company has a strong and resilient supply chain with over 60 production facilities across 14 countries, providing flexibility in the face of tariff changes. Coherent paid down $136 million in debt during the quarter, strengthening its balance sheet and reducing debt leverage to 2.1 times. The company's guidance for the fourth quarter indicates potential pressure on gross margins, with expectations set between 37% and 39% [3].

Despite the positive financial performance, 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 incurred restructuring costs of $74 million in the third quarter related to portfolio optimization and workforce reductions.

In summary, Susquehanna's adjusted price target reflects a mixed outlook for Coherent, with analysts expecting in-line to modest upside results in the near term, but cautioning about the latter half of the year. Investors should consider these factors when evaluating their positions in Coherent.

References:
[1] https://www.gurufocus.com/news/2992989/coherent-cohr-sees-price-target-boost-amid-mixed-outlook-cohr-stock-news
[2] https://www.tipranks.com/news/the-fly/coherent-price-target-raised-to-120-from-100-at-susquehanna-thefly
[3] https://www.ydr.com/story/news/local/2025/07/21/brookfield-partners-with-google-in-worlds-largest-clean-power-deal/85309102007/