Coherent’s Next Gear: The Acceleration Story Begins

about 1 month ago

"Coherent just delivered a decisive acceleration, and the market still hasnt caught up. A company that was already executing well is now entering a higher gear. TKey takeaways: Ten consecutive double-beats — a streak that now spans more than two years. Gross margin approaching 40%, ahead of schedule by two quarters. Operating margin nearing 20%, a clear sign of leverage taking hold. Demand visibility now stretches years ahead, with supply constrained in key optical and laser segments. The industrial-laser segment, long a drag, is expected to turn positive next quarter. Peers like Lumentum (LITE) and Broadcom (AVGO) don’t reflect similar GARP/upside. Prior price target: $200 — now raised to $225 (12-month view) with $500 in sight within three years."

Coherent just delivered a decisive acceleration, and the market still hasn’t caught up. A company that was already executing well is now entering a higher gear. The skeptics who believe networking optics (similar to how they felt about memory up until recently) are stagnant are misreading this transformation. Key takeaways: Ten consecutive double-beats — a streak that now spans more than two years. Gross margin approaching 40% , ahead of schedule by two quarters. Operating margin nea

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