COHR – Market expectations are for declining Uniform ROA following recent improvements, and management has concerns about industry trends, growth, and margins

• Coherent, Inc. (COHR:USA)currently trades below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 10.8x Uniform P/E, implying bearish expectations for the firm. Moreover, management has concerns about industry trends, growth, and margins
• Specifically, management may have concerns about the challenges associated with building full color microLED displays, and may also be concerned about capacity investments in OLED fabs. Additionally, they may lack confidence in the sustainability of sequential double-digit bookings growth as a result of strong semiconductor CapEx, and may have concerns about the sustainability of growth in advanced packaging designs among top-tier smartphone manufacturers and HDI board usage among second-tier manufacturers. Moreover, they may lack confidence in the sustainability of net sales growth at current levels in their Microelectronics and Materials Processing and Markets segments, and may have concerns about their ability to meet their gross margin guidance for Q3