COHR’s 13.38% jump: growth supports the move, but not a chase

I view today’s +13.38% move to $243.38 as broadly supported by the growth outlook, but not as a reason to chase aggressively. Q3 revenue rose 49.9% year over year, net income 69.9%, and reported EPS 59.7%; consensus forecasts EPS growth of 85.5% in FY 2027 and 51.7% in FY 2028. That growth puts the 23.4x FY 2027 and 15.4x FY 2028 P/Es in a more reasonable light than the 50.4x trailing multiple. However, free cash flow was −$868M, and shares remain down 25.6% over three months despite today’s rebound. The move does not change my positive view, but cash generation is a meaningful risk. I would start a modest position rather than assume the rally will continue.