Add as a preferred source on GoogleNorthland Raises Coherent, Applied Optoelectronics Ratings to Outperform
Northland kept price targets at $280 for Coherent and $120 for Applied Optoelectronics, citing recent share pullbacks and Marvell's agreement to acquire Lumentum.
Northland raised ratings on Coherent Corp. (COHR) and Applied Optoelectronics (AAOI) to Outperform from Market Perform on Nov. 2, keeping price targets unchanged while citing recent share pullbacks and the value of photonic devices for AI chip suppliers.
The target for Coherent remained $280 per share, while Applied Optoelectronics' target stayed at $120. Northland cited the stocks' pullbacks alongside Marvell's agreement to acquire Lumentum as highlighting the value of photonic-device capabilities for AI chip suppliers.
On Nov. 2, the companies announced a stock deal under which Marvell would acquire Lumentum. Lumentum shareholders would receive 4.5 Marvell shares for each Lumentum share. The deal implied a $115 billion enterprise value for Lumentum, or about $1,132 per share, representing a 23.9% premium to its unaffected Oct. 28 closing price.
Marvell's portfolio includes electrical and optical interconnect, switching and custom XPU technology. Lumentum brings lasers, optical transceivers, optical circuit switching and specialized compound-semiconductor manufacturing. The companies described the combination as a way to offer more integrated optical solutions for AI infrastructure.
The companies expect to close the transaction in the first half of 2028, subject to shareholder, regulatory and other customary approvals.