Morgan Stanley comments on Coherent (COHR.US) Q1 financial report: Not perfect, but “sufficient”; the real highlight is the $20 billion long-term agreements

According to Golden Ten Data, on November 5, Morgan Stanley released its review of optical component manufacturer Coherent (COHR.US) for the first quarter of fiscal year 2027, maintaining an "equal-weight" rating and a target price of $325. The research report noted that both quarterly revenue and profit exceeded expectations, and for the first time, a long-term NPO (Near Packaging Optics) agreement was clearly identified, with a potential scale of $20 billion over five years starting from 2028. However, the report also pointed out that gross margin improvement continues to lag behind industry peers, and real margin elasticity will not be seen until 2028. Morgan Stanley also significantly raised its earnings forecasts for FY2027 to FY2029.