12 Best Growth Stocks to Invest In According to Analysts

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10. Coherent Corp. (NYSE:COHR)

Number of Hedge Fund Holders: 71

Upside Potential as of February 19: 38.15%

Coherent Corp. (NYSE:COHR) specializes in engineered materials, optoelectronic components, and laser systems. It serves markets like industrial, communications, electronics, and instrumentation. Operating across Networking, Materials, and Lasers segments, it provides a range of solutions from telecommunications products and advanced optics to laser systems and specialized materials.

The company is making headway in AI with its 800G transceivers. Earlier on November 18, 2024, Citi analyst Papa Sylla increased the stock’s price target to $136 from $106, maintaining a Buy rating. Sylla projects that the company will reach a 40% non-GAAP gross margin and $5 EPS by fiscal 2026, driven by AI sales in part. Citi believes that the market undervalues this AI potential.

Due to the strong adoption of its 800G transceivers, the company achieved record FQ2 2025 datacom revenue, which was up 4% sequentially and 79% year-over-year. To support this growth, indium phosphide production tripled year-over-year. This is a crucial semiconductor material used in lasers and other optoelectronic devices, which is needed for high-speed data transmission in applications like AI-driven data centers. The company also plans to increase production and sales of its 1.6T transceivers in 2025, and it’s already developing the next generation 3.2T transceivers. Coherent Corp. (NYSE:COHR) is investing in R&D to maintain its technological edge.

Invesco Small Cap Value Fund stated the following regarding Coherent Corp. (NYSE:COHR) in its Q3 2024 investor letter:

“Coherent Corp. (NYSE:COHR): This laser company develops and manufactures optoelectronic components and devices used in the communications, electronics and industrial markets. The company has been benefiting from growing awareness of an improved growth outlook driven by artificial intelligence (AI), given that its optical transceivers are key enablers for networking of AI servers.”

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