COHR Falls 17% in a Month: Is the Sell-Off an Opportunity?

Coherent Corp. shares declined 17% over the past month despite fiscal 2026 revenues rising 22.5% to $7.12 billion, driven by strong AI datacenter and communications demand. While the company shows robust demand visibility through 2028 and improving margins, investors are concerned about elevated execution risks from massive capital expenditures ($1.1B in fiscal 2026), declining operating cash flow, and overlapping product ramps. The stock trades at 26.5X forward earnings, above industry average, creating valuation concerns despite strong momentum.