Bernstein: Optical Module Pullback Does Not Alter Fundamentals; Coherent Revenue Expectations Beat Consensus

That according to Chaoxiang Research, Bernstein's research report dated October 19, 2026, noted that Lumentum fell 13% over the past month, while Coherent dropped 28%; Coherent's Q1 revenue is expected to reach $2.4 billion, above the consensus estimate of $2.3 billion, with EPS projected at $2.05, higher than the consensus of $1.99; Lumentum's Q1 revenue is forecast at $1.254 billion, broadly in line with the consensus estimate of $1.252 billion.

Bernstein assessed that the catalysts behind the pullback have not changed the fundamentals of optical modules. The firm maintains an Outperform rating on both companies, with price targets of $1,220 for Lumentum and $350 for Coherent. Coherent's Q1 revenue and EPS both surpassed consensus estimates, indicating it may raise its guidance in Q2. Lumentum's Q1 results hovered near the midpoint of its guidance range, suggesting possible upward revisions next quarter as well. Following the narrowing valuation gap, investment preference between the two stocks has shifted toward a balanced stance.