On July 21, Coherent rose 8.41% in regular trading, trading at $305.0/share, with turnover of $129 million. The optical communications sector extended its rebound momentum, with peers Corning up nearly 4%, Vishay Intertechnology up over 6%, and Lumentum posting strong gains.

On the news front, the optical communications sector had experienced consecutive pullbacks since July 10, with Coherent's share price retreating over 21% from the $332 level, entering an oversold recovery phase. Multiple institutions have recently raised target prices on the stock — BNP Paribas lifted its target to $415 from $380 maintaining an Outperform rating, while Raymond James raised its target to $435 from $371. Barclays also upgraded targets on sector peers Astera Labs and Credo, citing confidence in AI compute expansion driving high-speed interconnect demand.

Additionally, Coherent secured a $50 million CHIPS Act subsidy to expand indium phosphide production capacity, and sustained AI data center demand for high-speed optical communications continues to support the sector's medium-term outlook.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)