On July 21, Coherent rose 3.07% overnight, trading at $294.15/share, with turnover of $2.4448 million. The stock extended the prior session's rebound momentum as the optical communications sector continued recovering from a steep pullback.

On the news front, the optical communications sector entered an oversold recovery phase after declining over 21% from the $332 area since July 10. Institutional upgrades provided additional support: Barclays raised Astera Labs' target price to $325 and Credo's target to $300, citing sustained AI computing expansion driving high-speed interconnect chip demand. BNP Paribas lifted Coherent's target price from $380 to $415, maintaining an outperform rating. Raymond James previously raised its target to $435. Sector peers Lumentum and Credo gained over 4% in the prior session. Coherent also benefits from a $50 million CHIPS Act subsidy for InP capacity expansion, supporting the mid-term outlook for AI data center optical communications demand.

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