Coherent Corp (COHR.N): PhotonLink: Lighting a Path to an NPO/CPO Future

Morgan Stanley updates coverage on Coherent Corp (COHR.US), maintaining an Equal-weight rating with a $375 price target. The report discusses Coherent's PhotonLink launch at ECOC (Sept 21), which expands COHR's role from component supplier toward an integrated optics platform provider, addressing the integration challenge for hyperscalers seeking open CPO/NPO architectures without in-house expertise. Content reaches up to $15K per 100T of I/O at 200G per lane. Management disclosed more than 10 CPO engagements, more than 10 NPO engagements and more than 5 chip-to-chip engagements, with scale-out CPO revenue beginning Q4CY26, scale-up CPO and NPO in H2CY27, and an NPO long-term agreement secured. 2030 SAM steps up to $90B+ from $70B+, with PhotonLink at $30B+ versus roughly $15B CPO prior, driven largely by fuller NPO inclusion and chip-to-chip contributions. Coherent's vertical integration and proven high-volume manufacturing (over 300M InP lasers shipped) should help de-risk CPO/NPO sc