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Zacks-Jul 15, 04:31 PM
COHR's Post-Earnings Pullback Has Strengthened the Investment Case
Coherent (COHR) pulled back 19% over the past month after an extraordinary rally, despite delivering strong quarterly results, raising its outlook, and highlighting record backlog visibility extending through 2028. Management expects fiscal 2027 growth to outpace fiscal 2026 while ramping its 6-inch indium phosphide platform, a key technology for next-generation AI networking infrastructure.
Why it matters: Zacks consensus estimates 2026 earnings of $5.47 (55% YoY growth) and revenues of $7.06 billion (21.5% YoY growth); COHR holds a Zacks Rank #1 (Strong Buy) and is viewed as outperforming optical networking peers Lumentum and Fabrinet on AI exposure and growth visibility.