New York, February 23, 2026, 19:26 (EST) — After-hours
Coherent Corp shares rose about 0.3% to $248.89 in after-hours trading on Monday after Morgan Stanley lifted its price target on the laser and optical components maker.
The move keeps the stock near record territory after a strong run in recent sessions. Traders have been treating optics and photonics suppliers as a second-order play on AI data-center spending, where bigger clusters mean more networking gear.
For Coherent, the debate has narrowed to how fast it can add capacity and keep margins steady while customers pull forward orders. A bank target now sitting almost on top of the share price is a reminder that not everyone is chasing it higher.
Morgan Stanley maintained its Equal-Weight rating — a call that implies performance broadly in line with peers — and raised its price target to $250 from $200, according to Benzinga’s analyst ratings feed. (Benzinga)
Coherent closed at a record $248.18 on Feb. 20 and has traded as high as $252.49, Macrotrends data showed. (Macrotrends)
The Pennsylvania-based company makes lasers, optical transceivers and other components used in data-center links, industrial tools and electronics. Those parts sit deep in supply chains, which can make quarterly results swing on customer timing.
On Feb. 4, Coherent reported fiscal second-quarter revenue of $1.69 billion and non-GAAP earnings of $1.29 per share. CEO Jim Anderson said the quarter was driven by demand in its datacenter and communications segment and that the company expects “continued strong growth” into fiscal 2027, while CFO Sherri Luther said it was ramping capital investment to expand capacity. (Coherent Inc)
Coherent forecast third-quarter revenue of $1.70 billion to $1.84 billion, and projected non-GAAP gross margin of 38.5% to 40.5% and non-GAAP EPS of $1.28 to $1.48. Non-GAAP figures strip out certain costs and one-offs that can cloud operating trends.
Still, the stock’s valuation is doing more of the work now. A small miss on margins or a slip in shipments can bite when expectations are high, especially if big cloud customers slow orders or push deliveries into later quarters.
For Tuesday’s session, investors will be watching whether the analyst action draws fresh buyers, or just more profit-taking near the highs. The stock has been swinging on small headlines and positioning.
The next hard date on the calendar is March 17, when Coherent plans a Technology Innovation Briefing at the OFC conference in Los Angeles, with Anderson and other senior leaders slated for presentations and Q&A. (Coherent Inc)
