Coherent Stock Rallies On Analyst Upgrade Following Nvidia's GTC 2025: Retail Turns Extremely Bullish

Shares of Coherent Corp. (COHR) surged over 12% in Monday’s regular trading session and extended gains in after-market hours after analysts at Raymond James upgraded their rating for the stock.

According to The Fly, Raymond James upgraded Coherent to ‘Strong Buy’ from ‘Outperform’ with a price target of $91. This implies an upside of nearly 19% from Monday’s closing price.

The brokerage noted that following Nvidia Corp.’s GTC 2025 event and Corning’s analyst day, concerns around co-packaged optics are overblown.

Coherent announced a partnership with Nvidia on silicon photonics at the GTC 2025 event. With demand for Blackwell chips outstripping supply by 15 to 1, analysts estimate that the power consumption is likely to go up as well.

This is where silicon photonics technology is expected to help – Nvidia’s Spectrum-X Photonics and Quantum-X Photonics networking switches use high-power, high-efficiency lasers to reduce power consumption and make the system more resilient.

Raymond James forecasts $22.2 billion in artificial intelligence (AI) backend transceiver sales by 2030, implying an annual growth rate of 30% from 2024.

That said, it believes that better clarity over the market opportunity for co-packaged optics could be a catalyst for the Coherent stock.

Retail sentiment on Stocktwits around Coherent gained momentum, entering the ‘extremely bullish’ (79/100) territory from ‘bullish’ a day ago.

Message volumes surged, too, showing an increased investor interest in the stock.

COHR sentiment and message volume March 25, 2025, as of 1 am ET | Source: Stocktwits

One user has a price target of $100 for the Coherent stock, implying a 30% upside from Monday’s closing price.

Data from Koyfin shows the average price target for Coherent is $114.57, implying a 49% upside from current levels.

Of the 19 brokerage calls, 14 have a ‘Strong Buy’ or ‘Buy’ rating, while five have a ‘Hold’ rating.

Coherent’s stock has declined 19% year-to-date.

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