TD Cowen analyst Krish Sankar maintained a Buy rating on Cohu today and set a price target of $30.00.
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Krish Sankar has given his Buy rating due to a combination of factors including Cohu’s strong performance and strategic positioning in emerging markets. The company has shown robust growth in its system sales, particularly with the Eclipse handler system, which is in demand for high-end datacenter and compute markets due to the increasing power requirements of AI systems. Additionally, Cohu’s HBM inspection systems are expected to generate significant sales, indicating a promising growth trajectory in this segment.
Furthermore, Cohu’s operational improvements and cost-saving measures have been effective, with a targeted operational expenditure run rate that suggests financial leverage. Despite some seasonal headwinds and limited visibility into the timing of a full market recovery, the company’s recurring revenue streams and recent design wins position it well for future growth. These factors collectively support the upward revision of the price target and justify the Buy rating.