Needham analyst Charles Shi has maintained their neutral stance on COHU stock, giving a Hold rating today.
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Charles Shi has given his Hold rating due to a combination of factors influencing Cohu’s current market position. The company reported revenues slightly above expectations, with gross margins aligning with predictions and effective operational expense management leading to an earnings per share outcome that surpassed forecasts. Despite a 17% quarter-over-quarter revenue increase, the industry test cell utilization remained mostly stagnant or declined, and the revenue guidance for the next quarter suggests a slight decrease, although gross margins are expected to improve due to increased recurring revenue.
Shi notes an improved outlook in the automotive sector, particularly with some traction in the Chinese electric vehicle supply chain, but a robust cyclical recovery is not yet evident. In the long term, Cohu’s advancements in high-bandwidth memory stacked-die inspection and high-performance chip handlers could foster growth beyond traditional markets. However, Shi prefers to maintain a cautious stance, opting to wait for clearer signs of a stronger market recovery before revising the rating.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $24.50 price target.