1. Coherent sells Aerospace and Defense business to Advent for $400 million. 2. Sale proceeds will reduce debt and increase EPS immediately. 3. Coherent beat earnings and revenue estimates with $1 EPS and $1.52 billion revenue. 4. Analysts generally maintain favorable ratings but with varying price targets. 5. Stock price dropped by 23.47% to $87.25 following the news.
The significant drop in stock price signals negative market sentiment following the announcement of the sale and the downgrade from Bank of America. Historical context: past divestitures have sometimes led to decreased investor confidence.
The article discusses a strategic business decision that affects COHR’s future growth trajectory, directly impacting its financial health and investor perception.
The immediate impact is evident in the stock drop, but the focus on core markets may stabilize COHR in the near future. Investors typically react quickly to such corporate changes.