Coherent (COHR) shares closed meaningfully higher on May 11 after Stifel’s senior analyst Ruben Roy issued a constructive note in favor of the optical networking specialist.
Roy maintained a “Buy” rating on COHR this morning and raised his price target sharply to $412, indicating potential upside of another 8% from current levels.
Stifel’s bullish call on Coherent stock is particularly significant given it’s already up a remarkable 95% year-to-date.
Coherent Stock Is Strongly Positioned for Further Gains
Roy’s decision to raise his price target on COHR shares is rooted in the U.S. hyperscalers’ plans of accelerating capital expenditures by a whopping 67% on a year-over-year basis in 2026.
According to him, the NYSE-listed firm is a primary beneficiary of the "Scale-Out” and “Scale-Up” frameworks essential for artificial intelligence (AI) data centers.
Stifel also cited order visibility for its positive view on Coherent, which now extends from 12 months to 18 months, a significant increase from historical norms.
With supply-side scarcity at the critical laser layer, Ruben Roy expects COHR to deliver consistent beat-and-raise results as the AI infrastructure cycle enters its next phase of expansion.
Why Else Is Stifel Bullish on COHR Shares?
In a research note dated May 11, Stifel analysts led by Ruben Roy dubbed Coherent shares a "top pick” among optical networking names, outpacing rivals like Lumentum (LITE) and Ciena (CIEN).
Its bullish thesis is further supported by COHR’s dominance in upstream components, specifically InP and EML lasers required for 800G and 1.6T transceivers.
As Nvidia (NVDA) and other AI chipmakers push for higher bandwidth, the firm’s vertical integration provides a competitive moat.
Stifel also believes the company’s recent advancements in silicon carbide and 10kV power devices for industrial AI applications offer a secondary, high-margin growth lever through mid-2026.
Note that Coherent currently sits firmly above its key moving averages (MAs), with an RSI in the late 60s, reinforcing that it’s in a strong uptrend.
How Wall Street Recommends Playing Coherent
Other Wall Street analysts seem to agree with Ruben Roy on COHR stock as well.
The consensus rating on Coherent sits at “Strong Buy” currently, with price targets as high as $455, indicating potential upside of nearly 20% from here.
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