Angelica Ballesteros
2 min read
In This Article:
We recently published These 10 Companies are in Beast Mode. Coherent Corp. (NYSE:COHR) is one of the Wednesday’s top performers.
Coherent Corp. rallied by 5.77 percent on Wednesday to finish at $85.63 apiece, echoing the rally in stocks riding the Artificial Intelligence boom following technology giant Nvidia Corp.’s surge to a new all-time high.
Being one of the enablers and benchmark setters of the AI industry, Nvidia Corp.’s rally spilled over to stocks riding the AI wave, such as data centers and quantum computers, among others.
Additionally, optimism for Coherent Corp. (NYSE:COHR) was further supported by investment firm Raymond James’ “strong buy” recommendation for its stock last week, with a 5.5 percent higher price of $96 versus $91.
According to Raymond James, the bullish rating reflected its long-term growth targets that surpassed the broader market’s expectations.
A row of precision industrial lasers in action, cutting the most intricate of shapes.
In its annual shareholders’ meeting recently, Coherent Corp. (NYSE:COHR) outlined its targets, including a gross margin higher than 42 percent and an operating margin above 24 percent, indicating that by 2028, the company could achieve an EPS of around $8-9, which will be a substantial increase from forecasts of under $4 in fiscal 2025.
While we acknowledge the potential of COHR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
