[Bernstein: Optical module pullback does not change fundamentals, Coherent revenue forecast exceeds consensus] According to Deep Tide TechFlow, citing research from Tide Research, Bernstein's October 19, 2026, report noted that Lumentum has dropped 13% over the past month, while Coherent has fallen 28%. Coherent's Q1 revenue is expected to reach $2.4 billion, exceeding the consensus estimate of $2.3 billion, with earnings per share (EPS) projected at $2.05, higher than the consensus estimate of $1.99. Lumentum's Q1 revenue is expected to be $1.254 billion, roughly in line with the consensus estimate of $1.252 billion. Bernstein believes that the catalysts for the pullback have not altered the fundamentals of the optical module sector and maintains an "Outperform" rating for both companies, with target prices of $1,220 for Lumentum and $350 for Coherent. Coherent's Q1 revenue and EPS both exceeded consensus expectations, and guidance for Q2 may be raised. Lumentum's Q1 results are close to the midpoint of guidance, and Q2 guidance may also be raised. After the valuation gap narrows, the preference between the two companies has shifted to a more balanced stance.