Cohu (NASDAQ:COHU) Earns "Buy" Rating from Needham & Company LLC

Key Points

• Needham reaffirmed its “Buy” rating on Cohu and set a $65 price target, implying 22.32% upside. The stock has a consensus “Moderate Buy” rating and an average target of $69.38.
• Cohu exceeded quarterly expectations, reporting $0.43 EPS versus $0.35 expected and $172.96 million in revenue versus $170.25 million expected; revenue rose 37% year over year.
• Despite strong institutional ownership and growth prospects, profitability remains a concern: Cohu posted a negative net margin and negative return on equity, while insiders sold approximately $8.3 million of stock over the past 90 days.

Cohu (NASDAQ:COHU - Get Free Report)'s stock had its "buy" rating reaffirmed by research analysts at Needham & Company LLC in a research report issued to clients and investors on Thursday, Benzinga reports. They presently have a $65.00 price target on the semiconductor company's stock. Needham & Company LLC's price target indicates a potential upside of 22.32% from the stock's current price.

A number of other brokerages have also recently issued reports on COHU. Jefferies Financial Group reaffirmed a "buy" rating and set a $74.00 target price on shares of Cohu in a research report on Friday, July 31st. Craig Hallum reissued a "buy" rating and issued a $74.00 price target on shares of Cohu in a research report on Friday, July 31st. Zacks Research cut shares of Cohu from a "strong-buy" rating to a "hold" rating in a research note on Friday, August 28th. Stifel Nicolaus set a $75.00 price objective on shares of Cohu in a report on Thursday. Finally, B. Riley Financial raised their target price on shares of Cohu from $65.00 to $69.00 and gave the company a "buy" rating in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Cohu presently has a consensus rating of "Moderate Buy" and an average price target of $69.38.

Cohu Price Performance

NASDAQ COHU opened at $53.14 on Thursday. Cohu has a fifty-two week low of $21.10 and a fifty-two week high of $75.72. The stock's 50-day moving average is $57.08 and its two-hundred day moving average is $46.69. The company has a debt-to-equity ratio of 0.37, a current ratio of 5.74 and a quick ratio of 4.72. The firm has a market cap of $2.52 billion, a P/E ratio of -64.02 and a beta of 1.51.

Cohu (NASDAQ:COHU - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The semiconductor company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $0.08. The company had revenue of $172.96 million during the quarter, compared to the consensus estimate of $170.25 million. Cohu had a negative return on equity of 1.96% and a negative net margin of 7.43%. The firm's revenue was up 37.0% on a year-over-year basis. During the same quarter in the prior year, the company posted ($0.06) EPS. On average, analysts anticipate that Cohu will post 0.43 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, SVP Christopher Bohrson sold 10,000 shares of the firm's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $55.82, for a total value of $558,200.00. Following the sale, the senior vice president owned 159,702 shares in the company, valued at approximately $8,914,565.64. This trade represents a 5.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Andrew M. Caggia sold 15,252 shares of the firm's stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $51.74, for a total transaction of $789,138.48. Following the completion of the sale, the director owned 64,778 shares in the company, valued at approximately $3,351,613.72. The trade was a 19.06% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 134,999 shares of company stock valued at $8,321,309. Corporate insiders own 3.05% of the company's stock.

Hedge Funds Weigh In On Cohu

Large investors have recently bought and sold shares of the stock. Assenagon Asset Management S.A. bought a new stake in shares of Cohu in the 1st quarter worth approximately $705,000. Bank of America Corp DE acquired a new stake in shares of Cohu during the 2nd quarter worth approximately $17,744,000. Legal & General Group Plc bought a new stake in shares of Cohu during the second quarter valued at approximately $7,802,000. Louisiana State Employees Retirement System bought a new stake in shares of Cohu during the first quarter valued at approximately $634,000. Finally, Paradigm Capital Management Inc. NY bought a new stake in shares of Cohu during the second quarter valued at approximately $42,794,000. 94.67% of the stock is currently owned by institutional investors and hedge funds.

Cohu News Summary

Here are the key news stories impacting Cohu this week:

• Positive Sentiment: Q3 results exceeded expectations: Cohu reported adjusted earnings of $0.43 per share, above the $0.35 consensus estimate, while revenue reached approximately $173.0 million versus expectations of $170.25 million. Revenue increased 37% year over year, and earnings improved from a $0.06-per-share loss in the prior-year quarter. Cohu Q3 earnings and revenues top estimates
• Positive Sentiment: Management issued an aggressive growth outlook: Cohu expects 2027 revenue growth of approximately 30% to 40% and is targeting roughly three times as many shipments of its Eclipse platform. The forecast suggests improving demand for the company’s semiconductor test equipment and provides investors with a stronger forward-growth narrative. Cohu expects 2027 revenue growth and higher Eclipse shipments
• Positive Sentiment: AI and high-performance-computing exposure is expanding: On its earnings call, Cohu highlighted an HPC opportunity pipeline of approximately $1 billion and stronger bookings, reinforcing expectations that AI infrastructure investment could support future demand for its equipment. Cohu Q3 earnings call highlights
• Neutral Sentiment: Broader AI-sector momentum may help sentiment: Nvidia-related investor interest in AI infrastructure shares provides a favorable industry backdrop for Cohu, although the article does not describe a direct customer agreement or revenue impact for Cohu. Nvidia leads search for AI infrastructure shares
• Negative Sentiment: Profitability remains a risk: Despite the quarterly beat, Cohu continues to report negative net margin and negative return on equity. The stock also opened below its 50-day moving average, indicating that investors may still demand evidence that the projected growth will translate into sustained profitability.

Cohu Company Profile

Cohu, Inc is a global provider of semiconductor test and inspection equipment and related services. The company supplies solutions used by semiconductor manufacturers and outsourced semiconductor assembly and test providers to evaluate devices during production, helping improve manufacturing quality, reliability and efficiency.

Cohu's product portfolio includes semiconductor test handlers, contactors and other interface products, inspection and metrology systems, thermal-management equipment, and software for test-data analysis and factory automation.

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