Coherent suffers worst drop in 2 years on weak forecast

Optical devices maker Coherent shares COHR.N plunge 22.6% to $88.61, heading for their largest single-day decline since August 2023

Co forecast Q1 revenue between $1.46 bln and $1.60 bln, with the midpoint falling short of analysts' $1.54 bln estimate, as per LSEG data

However, COHR beats Wall Street estimates for Q4 adj. profit and revenue

Analyst reactions are mixed, with at least two brokerages cutting PT on the stock, while four others raising

Brokerage firm BofA also downgrades the stock to "neutral" from "buy", noting that COHR is showing signs of deceleration relative to both its own past performance and industry peers in a high-growth AI market

In contrast, Citi Research calls concerns about lost AI transceiver market share "premature" given COHR's 49% networking growth over the past year

Including session's moves, stock is down 6.6% YTD, compared with a 17.3% increase in the Philadelphia SE semiconductor index .SOX