What Happened?
Shares of materials and photonics company Coherent (NYSE:COHR) jumped 3.8% in the afternoon session after Morgan Stanley raised its price target on the stock to $180 from $150.
The analyst's move signaled increased confidence in the company's prospects. This positive sentiment was supported by Coherent's previous financial results, which showed strong performance. The company had reported revenue of $1.58 billion, with pro forma revenue growth reaching 19% year over year. This growth was mainly driven by high demand from AI-related data centers and communications infrastructure. The broader market environment for business services also appeared favorable, as companies increasingly viewed these services as essential for growth and efficiency.
After the initial pop the shares cooled down to $175.21, up 2.8% from previous close.
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What Is The Market Telling Us
Coherent’s shares are extremely volatile and have had 46 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 1.1% on the news that JPMorgan raised its price target on the stock to $215, prompting investor optimism. The bank cited significant growth potential for the company. The move also followed Coherent's launch of a new 300mm silicon carbide platform. This technology was designed to meet the increasing need for better cooling efficiency in artificial intelligence (AI) data centers. Additionally, the new platform bolstered technologies used in other advanced electronics, including augmented and virtual reality (AR/VR) devices.
Coherent is up 74.2% since the beginning of the year, but at $175.21 per share, it is still trading 11.7% below its 52-week high of $198.50 from December 2025. Investors who bought $1,000 worth of Coherent’s shares 5 years ago would now be looking at an investment worth $2,350.
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