Coherent (COHR) Valuation Check After New 300mm Silicon Carbide Platform for AI Datacenters

Coherent (COHR) just put a brighter spotlight on its stock by unveiling a next generation 300mm silicon carbide platform for AI datacenters, aiming squarely at thermal efficiency and scalability challenges.

See our latest analysis for Coherent.

That backdrop helps explain why Coherent’s share price is now at $177.35, with a powerful 90 day share price return of 81.27 percent and a three year total shareholder return of 383.24 percent. This signals strong, still building momentum around its AI centric roadmap.

If this kind of AI infrastructure story interests you, it is worth exploring other names riding similar tailwinds using our high growth tech and AI stocks.

With shares already above the average analyst target and trading at a premium to many hardware peers, investors now face the key question: Is Coherent still mispriced for its AI upside, or is future growth already baked in?

Most Popular Narrative: 5.1% Overvalued

With Coherent trading around $177.35 against a narrative fair value near $168.74, the story leans toward optimism about compounding AI demand.

The analysts have a consensus price target of $113.368 for Coherent based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $135.0, and the most bearish reporting a price target of just $85.0.

Read the complete narrative.

Want to see what justifies a richer valuation than the Street, despite cautious sector assumptions and only mid teens growth expectations? The narrative leans on a powerful earnings reset, expanding profitability, and a punchy future multiple usually reserved for top tier compounders. Curious which specific long range numbers make that fair value add up and how they compare to today’s margins and revenues? Dive in to unpack the full playbook behind this target.

Result: Fair Value of $168.74 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, mounting low cost competition and heavy capital needs could pressure margins and delay returns, which could quickly undermine the upbeat AI driven valuation case.

Find out about the key risks to this Coherent narrative.

Build Your Own Coherent Narrative

If this narrative does not quite align with your view or you prefer digging into the numbers yourself, you can quickly build a custom story in just a few minutes, Do it your way.

A great starting point for your Coherent research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.