Bernstein starts coverage of Coherent stock at Outperform

Coherent (ISIN US19247G1076) was trading at EUR 293.90 at Lang & Schwarz on October 7, 2026 at 3:35 p.m. CEST, down 2.02 percent versus the prior close of EUR 299.95. Bernstein initiated coverage with an Outperform rating and a USD 350.00 price target on September 30, 2026, according to Markets Insider.

PhotonLink builds an AI optics case

Coherent launched PhotonLink on September 21, 2026, combining lasers, silicon photonics, precision optics, fibers and detectors with assembly and testing for AI datacenters. The company said the platform had more than 10 co-packaged optics engagements, more than 10 near-packaged optics engagements and more than five chip-to-chip connectivity engagements, according to Coherent.

Revenue from PhotonLink is expected to begin ramping in the fourth quarter of calendar 2026. That timing gives the product launch a measurable operating test, rather than leaving the AI infrastructure story at the level of a technology announcement.

Bernstein adds a valuation marker

Bernstein's USD 350.00 target sits above the US market reference price of USD 321.38 reported at 1:44 p.m. UTC on October 7, 2026, while Coherent's 52-week range was USD 108.19 to USD 440.00. The separate euro quotation from Lang & Schwarz remains the reference price for German investors.

The analyst note also identified overbuild risk even as it argued that networking and optical companies could benefit from AI infrastructure spending, according to Markets Insider. That counterpoint matters because the stock's valuation depends on demand translating into qualified production and revenue.

Revenue growth meets new guidance

Coherent reported USD 2.046 billion of revenue in the fourth quarter of fiscal 2026, up 33.80 percent year over year, and adjusted earnings per share of USD 1.74, according to Trades Of The Day. Fiscal 2026 revenue reached USD 7.118 billion, up 22.50 percent, while adjusted earnings per share rose 58.90 percent to USD 5.61.

First-quarter fiscal 2027 guidance calls for revenue of USD 2.20 billion to USD 2.40 billion and adjusted earnings per share of USD 1.85 to USD 2.05. The guidance places the next test on both the PhotonLink ramp and Coherent's ability to convert AI demand into higher operating output.

Stock trades below prior close

Coherent stock was trading at EUR 293.90 at Lang & Schwarz on October 7, 2026 at 3:35 p.m. CEST, down 2.02 percent versus the Lang & Schwarz prior close of EUR 299.95. The continuously updated real-time quote of Coherent stock.

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