2024-02-09 17:34:01 ET
Summary
- Coherent Corp. (formerly II-VI) has seen its shares double in recent months, benefiting from the AI/ML hype and improved demand trends shown in its recent fiscal Q2 earnings.
- The company's debt overhang and operational weakness have caused significant pressure on its stock price, but as (sequential) growth returns, concerns come down.
- Coherent's silicon carbide business and potential growth in transceivers for AI data centers are seen as potential bright spots for future earnings.
In the fall, I believed that Coherent Corp. ( COHR ) was not sending a coherent message. Formerly known as II-VI, Coherent has been hurt by a combination of debt overhang and operational weakness due to lower demand. While the business could be a beneficiary of the AI/ML hype in the market, it was a non-inspiring 2024 outlook which did not send a coherent message to investors....
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Coherent: Big Improvements On The Horizon