Coherent, Inc. ($COHR) Possible Buy to $238 Confident Investor Rating: Good
| Company name | Coherent, Inc. |
| Stock ticker | COHR |
| Live stock price | [stckqut]COHR[/stckqut] |
| P/E compared to competitors | Good |
MANAGEMENT EXECUTION
| Employee productivity | Poor |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Poor |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $235.45 |
| Target stock price (averages with growth) | $328.94 |
| Target stock price (averages with no growth) | $223.44 |
| Target stock price (manual assumptions) | $227.48 |
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/cohr
Coherent, Inc., incorporated on January 11, 1989, is a photonics manufacturer. The Company is engaged in designing, manufacturing, servicing, and marketing of lasers and related accessories for a range of scientific, commercial and industrial applications. The Company operates through two segments: Specialty Lasers and Systems (SLS) and Commercial Lasers and Components (CLC). The Specialty Lasers and Systems segment develops and manufactures configurable products serving the microelectronics, scientific research and government programs, and original equipment manufacturer (OEM) components and instrumentation markets. The Commercial Lasers and Components segment focuses on higher volume products that are offered in set configurations. The product architectures are designed for exchange at the point of use such that substantially all product service and repairs are based upon advanced replacement and depot (that is factory) repair. CLC’s primary markets include materials processing, OEM components, and instrumentation and microelectronics.
The Company offers a portfolio of carbon dioxide (CO2) and carbon monoxide (CO) lasers, diode laser systems and fiber lasers, laser cutting and machining tools, continuous wave (CW) solid state, diode lasers, diode-pumped solid-state lasers (DPSS), excimer lasers and ultraviolet (UV) beam delivery, ion lasers, three dimensional (3D) profiling lasers, tunable lasers, industrial short-pulse lasers and ultrafast lasers for science. These products address a range of applications, which are grouped into various markets, including microelectronics, materials processing, OEM components and instrumentation, and scientific research and government programs. The markets in the microelectronics industry that are supported by the Company include flat panel display (FPD) manufacturing, advanced packaging and interconnects (API) and semiconductor front-end (SEMI). It manufactures a range of DPSS lasers for different applications, including semiconductor inspection; advanced packaging and interconnects; laser pumping; spectroscopy; bio-agent detection; Deoxyribonucleic acid (DNA) sequencing; drug discovery; flow cytometry; forensics; computer-to-plate printing; entertainment lighting (display); medical; rapid prototyping and marking, welding and engraving.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in Coherent, Inc. as long as the indicators that I describe in my book The Confident Investor are favorable. I am adding Coherent to my Watch List.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Coherent, Inc. calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $152.44
- Growth: 0.19
- Current EPS (TTM): $8.08
- P/E: 19
- Future EPS Calc: $19.28
- Future Stock Price Calc: $366.35
- Target stock price: $227.47
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I hope that this makes you a Confident Investor.
