Coherent Corp. (NYSE:COHR) stock is surging 5.53% in pre-market trading on Wednesday, as investors anticipate the company's fourth-quarter earnings release scheduled for after the closing bell. The strong upward movement comes amid positive analyst sentiment and recent business developments.

Analysts expect Coherent to report robust financial results, with quarterly earnings projected at 92 cents per share, up from 61 cents per share in the year-ago period. The company's revenue is anticipated to reach $1.51 billion, compared to $1.31 billion a year earlier. This expected growth in both earnings and revenue is likely contributing to the stock's pre-market rally.

Adding to the optimism, Coherent recently announced a multi-year deal with Apple to supply Face ID laser technology for iPhones and iPads. This significant contract has further boosted investor confidence in the company's growth prospects. Moreover, several prominent analysts have recently raised their price targets for Coherent stock. Notably, JP Morgan analyst Samik Chatterjee maintained an Overweight rating and increased the price target from $100 to $127, while Citigroup analyst Atif Malik reaffirmed a Buy rating and raised the target from $100 to $115. These positive analyst outlooks, combined with the anticipated strong earnings report, are driving the stock's impressive pre-market performance.