Analyst Krish Sankar from TD Cowen maintained a Buy rating on Cohu (COHU – Research Report) and decreased the price target to $22.00 from $27.00.
Krish Sankar has given his Buy rating due to a combination of factors that highlight Cohu’s potential for growth and improved financial performance. The company has shown promising signs with a positive outlook for the June ’25 quarter, driven by recurring demand from a mobility customer and increasing orders for HBM inspection systems. This is supported by Cohu’s ongoing restructuring efforts aimed at optimizing manufacturing and labor costs, which are expected to yield significant benefits by CY26.
Despite some uncertainties, such as the potential impact of tariffs and limited visibility due to short product lead times, Cohu’s strategic initiatives and market dynamics present a favorable outlook. The company has experienced design win momentum and a strong performance in the automotive market, although inventory normalization may take a few more quarters. Additionally, recurring sales have grown, and the company has secured new handler wins, indicating a robust pipeline and potential for future revenue growth.
Sankar covers the Technology sector, focusing on stocks such as Apple, Pure Storage, and Cohu. According to TipRanks, Sankar has an average return of 10.2% and a 47.32% success rate on recommended stocks.
In another report released yesterday, Craig-Hallum also maintained a Buy rating on the stock with a $26.00 price target.