New York, February 23, 2026, 19:26 (EST) — Trading after the bell.
Shares of Coherent Corp edged up roughly 0.3% to $248.89 in Monday’s after-hours session, following a price target boost from Morgan Stanley for the laser and optical components company.
The stock is still hovering close to all-time highs, following several strong sessions. Traders have latched onto optics and photonics suppliers as a way to play the AI data-center buildout—bigger server clusters call for more networking hardware.
The conversation around Coherent now centers on just how quickly it can ramp up capacity without letting margins slip, as clients accelerate their orders. One bank’s target, barely above the current share price, underscores that some aren’t eager to push it much further.
Morgan Stanley kept its Equal-Weight rating, signaling expectations the stock will track with sector rivals, and bumped its price target up to $250, a jump from the earlier $200 mark, per Benzinga’s analyst ratings feed.
Coherent finished Feb. 20 at a record $248.18, with shares reaching up to $252.49, according to Macrotrends data.
Pennsylvania-based, the company produces lasers, optical transceivers, and a range of components for data-center links, industrial equipment, and other electronics. Its products are buried within complex supply chains—quarterly results often hinge on when customers place orders.
Coherent posted fiscal Q2 revenue of $1.69 billion on Feb. 4, with non-GAAP earnings landing at $1.29 a share. CEO Jim Anderson pointed to growth in the datacenter and communications business as the main engine, adding that “continued strong growth” is anticipated through fiscal 2027. CFO Sherri Luther noted capital spending is picking up as the company moves to boost capacity. Coherent Inc
Coherent is looking at third-quarter revenue between $1.70 billion and $1.84 billion, with a non-GAAP gross margin estimate landing somewhere in the 38.5% to 40.5% range. The company put non-GAAP EPS guidance at $1.28 to $1.48. These non-GAAP numbers exclude various costs and one-time items that might otherwise distort a clear read on operations.
But right now, much of the lift in the stock is coming from its valuation. With expectations dialed up, even a modest margin miss or a slight dip in shipments could sting—particularly if major cloud buyers hold back on orders or shift deliveries down the calendar.
Heading into Tuesday, the focus is whether analysts’ moves manage to attract new buyers—or if the run-up prompts more investors to lock in gains near current highs. Lately, the stock’s been moving on minor headlines and shifts in positioning.
March 17 is circled—Coherent has scheduled its Technology Innovation Briefing for that day at the OFC conference in Los Angeles. CEO Anderson and other top execs are expected to present and take questions.
