Deutsche Bank analysts provided their outlook on Coherent Corp. (NASDAQ:COHR) ahead of the company’s upcoming Q2 results on Wednesday.

The analysts expect the quarterly results to be generally in line with Street estimates as the company should have continued to benefit from an eased supply chain through the quarter.

The analysts expect similar dynamics to extend into 2023, and view the company’s extensive backlog (approximately $3.1 billion exiting Q1) as providing some revenue support in the occurrence of order pushouts/cancellations, hence making Q3 guidance relatively safe.

While the analysts acknowledge increasing macro pressure across segments, most notably in Comms, they believe management's guidance for double-digit growth in the segment to have already built in some level of conservatism.