Cohu initiated with a Buy at Jefferies

Jefferies initiated coverage of Cohu (COHU) with a Buy rating and $55 price target The firm views the company as an “emerging enabler of higher-complexity semi test.” Tailwinds from AI test demand and a cyclical recovery in the auto and industrial markets should drive 16% annual earnings growth and 105% annual earnings growth through fiscal 2028, the analyst tells investors in a research note. Jefferies sees an attractive risk/reward at current share levels.