Investing.com -- Jefferies assumed coverage of Coherent (NYSE:COHR) Corp and Lumentum Holdings (NASDAQ:LITE) with "Buy" ratings, citing strong growth prospects in the data center transceiver market as AI adoption drives higher interconnect speeds.
Jefferies sees transceiver demand accelerating, with AI server growth pushing unit sales and pricing higher. It forecasts a 29% compound annual growth rate (CAGR) for 100G+ transceivers through 2027, outpacing AI accelerator growth at 22%.
The firm downplayed fears of rapid displacement by co-packaged optics (CPO), expecting alternative packaging to first impact back-end networks while transceivers remain dominant through the decade.
Jefferies set a $110 price target for COHR, noting its strength in 400G transceivers and potential profitability improvements under CEO Jim Anderson. For LITE, with a $100 price target, the transition to 200G external modulated lasers (EMLs) presents a key growth driver as AI networks scale.
Related Articles
Jefferies: Coherent, Lumentum to benefit from AI-Driven transceiver growth
DOJ launches UnitedHealth billing probe, WSJ says; insurer says unaware
Air Liquide sees two of six US hydrogen hubs most likely to advance first after Trump halts funding
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。