Core Thesis - Coherent Corp. is positioned for significant growth, with the market yet to fully recognize its potential, as evidenced by its recent performance and operational strength [1][2][6]. Financial Performance - The company has achieved ten consecutive double-beats over more than two years, indicating consistent outperformance [3]. - Gross margins are approaching 40%, and operating margins are nearing 20%, reflecting improved profitability [3]. Market Dynamics - Demand visibility has significantly expanded, with constrained supply in critical optical and laser segments reducing execution risk [4]. - The industrial-laser segment, which has historically underperformed, is expected to turn positive in the next quarter, alleviating a long-standing drag on earnings [4]. Competitive Positioning - Coherent's leadership in networking optics sets it apart from competitors like Lumentum and Broadcom, which do not offer the same growth-at-a-reasonable-price (GARP) profile [5]. Growth Potential - Analysts have raised the 12-month price target from $200 to $225, with a three-year potential target of $500, indicating the market's underappreciation of the company's growth trajectory [6]. - The combination of strong demand, margin expansion, and operational leverage positions Coherent as an exceptional growth story with both visibility and scalability [6].