Quick Read – Bank of America raised Coherent’s (COHR) price target to $400 from $365 on a larger AI data center TAM, though maintaining Neutral signals valuation already reflects much upside. – Bank of America’s target raise acknowledges incremental upside in the AI optical…
frastructure buildout, but Coherent’s valuation of a 182x trailing P/E and 45x forward P/E already reflects much of the bull case. – The analyst who called NVIDIA in 2010 just named his top 10 stocks and Coherent wasn’t one of them. Get them here FREE
Bank of America just nudged its target on Coherent (NYSE:COHR) stock higher, lifting the price target to $400 from $365 while maintaining a Neutral rating. The catalyst: Bank of America raised its calendar 2030 AI data center systems total addressable market to roughly $1.7 trillion from $1.4 trillion, a thematic shift that also drove same-day price target hikes on several AI infrastructure names. For Coherent stock, the message is incremental upside, not a high-conviction call.
The analyst upgrade highlights how central optical components have become to the AI buildout, even as Coherent signals that valuation already reflects much of the bull case. The Analyst’s Case Bank of America’s thesis hinges on a bigger AI infrastructure pie. The firm asserted that 2026 will continue to be a year of accelerating AI sales and returns on investment, with 2027 potentially seeing improving tokenomics and efficiency as new compute and memory architectures ramp.