Coherent Price Target Rises to $250 on $90B Optical Market Forecast
Morgan Stanley raised Coherent’s price target to $250 from $200, citing optical technology adoption that could expand the market by $23 billion to $90 billion as traditional networks reach capacity limits. Bank of America also lifted its target to $250 and projects industry capital expenditure of $748 billion in 2026 and $869 billion in 2027.
1. Hedge Fund Momentum
Coherent added 29 new hedge fund holders in the fourth quarter of 2025, placing it among the top 15 stocks by hedge fund momentum and signaling growing institutional confidence.
2. Morgan Stanley Price Target Hike
On February 23, Morgan Stanley lifted its price target on Coherent to $250 from $200 while maintaining an Equal Weight rating, forecasting that optical technologies could add $23 billion to the addressable market as traditional networks near capacity.
3. Bank of America Forecast and Target Increase
On February 9, Bank of America raised its price target on Coherent to $250 from $230 and kept a Neutral rating, expecting industry capital expenditure of $748 billion in 2026 and $869 billion in 2027, reflecting 56% and 16% year-over-year growth.
4. Business Overview
Coherent specializes in engineered materials, opto-electronic components and devices, and lasers for industrial, communications, electronics and instrumentation markets, positioning it to benefit from rising optical deployment.