Northland’s Nov. 2 upgrades for Coherent Corp. and Applied Optoelectronics came as both stocks weakened and Marvell announced a proposed Lumentum acquisition, drawing attention to the optical supply chain.
Northland raised each company’s rating from Market Perform to Outperform. The target for Coherent remained $280 per share, and Applied Optoelectronics stayed at $120. The analyst said the share pullbacks and acquisition underscored photonic technology’s role in serving AI chip suppliers.
Marvell and Lumentum announced the proposed share exchange on Nov. 2. The exchange ratio gives Lumentum investors 4.5 Marvell shares for every one of their shares. The terms point to an implied $1,132 per Lumentum share, a 23.9% premium over its unaffected Oct. 28 close and an enterprise value of $115 billion.
Marvell’s offerings span links that carry data electrically or optically, switching equipment and custom XPU technology. Lumentum adds specialized compound-semiconductor manufacturing, optical circuit switching, laser and transceiver products. The companies said the combined businesses would offer AI infrastructure customers a wider range of optical solutions.
Closing is projected within the first six months of 2028, conditional on shareholder votes, regulatory action and other customary approvals. The transaction has not been completed.
Applied Optoelectronics plans to report third-quarter results Nov. 5 and hold an investor call at 4:30 p.m. ET, as noted in earlier EconoTimes coverage.
