BofA Hikes Coherent Price Target to $400 on $1.7 Trillion AI Data Center Forecast

"Bank of America just nudged its target on Coherent ( NYSE:COHR | COHR Price Prediction) stock higher, lifting the price target to $400 from $365 while maintaining a Neutral rating. The catalyst: Bank of America raised its calendar 2030 AI data center systems total addressable market to roughly $1.7 trillion from $1.4 trillion, a thematic shift that also drove same-day price target hikes on several AI infrastructure names. For Coherent stock, the message is incremental upside, not a high-conviction call."

"Bank of America's thesis hinges on a bigger AI infrastructure pie. The firm asserted that 2026 will continue to be a year of accelerating AI sales and returns on investment, with 2027 potentially seeing improving tokenomics and efficiency as new compute and memory architectures ramp. For Coherent specifically, optical components are critical plumbing inside AI data centers. As GPU clusters scale into the hundreds of thousands of accelerators, fiber optic connectivity handles the high-bandwidth, long-reach data movement that copper cannot."

"Coherent is a diversified photonics and laser supplier (formerly II-VI) serving data center, communications, and industrial markets. The Datacenter & Communications segment generated $1.361 billion in fiscal Q3 2026, up 41% year over year, and now represents 75% of total revenue. Coherent's Q3 FY2026 revenue of $1.805 billion grew 21% year over year, with non-GAAP EPS of $1.41. CEO Jim Anderson stated that "As AI datacenter infrastructure continues to scale, we are rapidly expanding capacity to meet demand.""

"Coherent stock has already run hard, up roughly 118% year to date (YTD). That explain"

Bank of America increased its Coherent price target to $400 from $365 while keeping a Neutral rating. The change followed an increase in the 2030 AI data center systems total addressable market to about $1.7 trillion from $1.4 trillion. The update reflects growing demand for optical components used in AI data center infrastructure. Coherent supplies photonics and laser products for data center, communications, and industrial markets, with its Datacenter & Communications segment driving most revenue. Coherent reported fiscal Q3 2026 revenue growth and higher segment revenue, and it stated it is expanding capacity as AI infrastructure scales. The stock has risen sharply year to date, suggesting valuation already reflects much of the upside.

Read at 24/7 Wall St.