Coherent's stock has been upgraded to Strong Buy following a significant 44% correction, which has removed valuation risks while the company's fundamentals remain strong. The stock now trades at about 15 times forward EV/EBITDA, near lows seen before the AI cycle, despite ongoing revenue growth, margin improvements, and lower debt. The company has fully booked FY2027 sales with easing supply constraints, supported by long-term agreements and a partnership with Nvidia, providing clear visibility into FY2028 and beyond. Limited downside risk from further valuation compression and expected EBITDA growth and cost efficiencies suggest a potential 35-40% upside over the next year.
Coherent's stock is trading at USD 202.36 as of Nov 03, 2026 10:21 WIB on Pluang, down 3.77% for the day and closer to its 52-week low of USD 128.70 than its high of USD 426.89. This price level contrasts with the company's strong fundamentals and recent upgrade to Strong Buy, highlighting a significant valuation gap. The market cap stands at $41.42 billion, reflecting investor caution despite the potential upside noted in the upgrade report.
Coherent Corp's stock fell over 50%, but its Q4 FY26 revenue grew 34% year-over-year, driven by a 66% increase in data center revenue and improved gross margins. The company intentionally built inventory to support expected AI data center growth and ...
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