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Lumentum and Coherent Stocks Jump 3% as StoneX Unveils Bold Price Targets
Lumentum and Coherent shares each rose about 3% in morning trading Monday after StoneX began coverage of both optical networking companies with Buy ratings and price targets of $1,200 and $425. StoneX analyst Cody Acree cited growing demand for optical technology used in AI data centers.
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What happened
Lumentum and Coherent shares each rose about 3% in morning trading Monday after StoneX began coverage of both optical networking companies with Buy ratings and price targets of $1,200 and $425. StoneX analyst Cody Acree cited growing demand for optical technology used in AI data centers.
Confirmed
Global impact / market context
A Buy rating with a price target is a broker's view that a stock should rise to a set level. StoneX expects AI data center demand to lift sales of optical parts, which supports revenue growth plans at both companies.
Analyst inference
The 3% moves show investors reacting to new analyst coverage rather than reported earnings. StoneX sees near-packaged optics, which places optical parts close to processing chips, arriving sooner than expected, and indium phosphide capacity expanding.
Analyst inference
What to watch
- Coherent plans to double indium phosphide capacity in the September quarter and more than double it again by the end of 2027, with Texas and Sweden facilities supporting the expansion. Confirmed
- StoneX suggests near-packaged optics could reach broader deployment sooner than expected, shifting the timeline to late 2027 and early 2028, with similar market share to co-packaged optics. Proposed
- Coherent's plan to exceed $3 billion quarterly revenue by the end of fiscal 2027 depends on capacity expansions converting into sales, so delays in Texas, Sweden, or Zurich facilities would matter. Analyst inference