Coherent Corp: AI Hype Meets Fundamentals

Summary

  • Coherent is well-positioned in high-growth markets like AI datacenter optics, silicon carbide for EVs, and lasers for diverse applications.
  • The company's vertically integrated model and focus on AI-driven networking hardware provide cost control, differentiation, and strong growth potential.
  • Management is prioritizing high-margin segments, reducing debt, and improving cash flow, with a strategic shift under the new CEO.
  • Despite strong fundamentals and growth, much of the future success appears priced in, so investors should look for value opportunities before buying.

Artificial intelligence circuit board 5

Jonathan Kitchen

Thesis Summary

Coherent (NYSE:COHR) is operating in a few growing markets, such as optical components for AI datacenters, silicon carbide for electric vehicles, and lasers for multiple applications. The company’s vertically integrated model and its portfolio give exposure to different

This article was written by

Since 2020, I have been deeply involved in the fundamental analysis of various publicly listed companies. This includes companies like Covestro, Signify, as well as Alibaba, Verizon, and China Mobile. With my background as an accountant at a Big-4 accounting firm, I possess the expertise to thoroughly analyze annual reports and financial information. This foundation enables me to critically assess whether a stock is undervalued or overvalued – which is crucial for making well-informed long-term decisions. I don't focus on any specific sector and am always open to suggestions for interesting companies to analyze. And I like coffee, if you haven't noticed yet.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About COHR Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on COHR

Related Stocks

SymbolLast Price% Chg
COHR
--