[Bernstein: Valuation Gap Widens Between Lumentum and Coherent, NPO May Become a CPO Alternative] According to Deep Tide TechFlow, based on research from Tide Research, Bernstein's October 12, 2026, report highlights that Lumentum (LITE) has a projected 2027 P/E ratio of 49.3x, while Coherent (COHR) stands at 32.9x. Bernstein maintains an outperform rating for both, with target prices of $1,220 and $350, respectively. Doubts remain about the large-scale production of Co-Packaged Optics (CPO) by 2028, while Near-Packaged Optics (NPO) may be ready by 2027. Bernstein believes the delay risk for CPO is overestimated, and NPO could serve as an alternative for vertically scaling optical interconnects. Long-term investors are mostly in a wait-and-see mode, while hedge funds are fiercely debating CPO and NPO. Competition in Asia is intensifying, but the moat provided by high-power laser technology remains intact. Bernstein recommends maintaining long or overweight positions in Lumentum and Coherent.