Needham analyst Charles Shi has maintained their neutral stance on COHU stock, giving a Hold rating on July 24.
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Charles Shi has given his Hold rating due to a combination of factors that contribute to a cautious outlook on Cohu’s stock. The company reported strong quarterly results, surpassing expectations, and provided optimistic revenue guidance for the next quarter. This positive outlook is partly driven by a significant order from a major mobile customer and signs of recovery in the automotive and industrial sectors.
However, despite these encouraging developments, there are concerns about the sustainability and consistency of this recovery. The management anticipates a gradual and potentially uneven improvement, which introduces uncertainty. Additionally, changes in tax accounting practices have exerted downward pressure on earnings, leading to a slight reduction in forward EPS estimates. As a result, the Hold rating is maintained while awaiting clearer indications of a stable cyclical recovery.
According to TipRanks, Shi is a 4-star analyst with an average return of 5.1% and a 49.78% success rate. Shi covers the Technology sector, focusing on stocks such as Entegris, Cohu, and AXT.
In another report released on July 24, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $20.50 price target.