Coherent, Inc. (COHR): Raising Estimates On Rofin Acquisition - Needham
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Needham & Company analyst, James Racchiuti, reiterated his Buy rating on shares of Coherent (NASDAQ: COHR) and raised the price target to $145 after the company hosted a call to provide updated guidance following the completion of its acquisition of Rofin-Sinar. Layering in the lower-margin Rofin business will result in lower gross margin and operating margins for the combined business. However, the analyst believes the acquisition will still be solidly accretive on a non-GAAP basis.
COHR’s near-term prospects should continue to be driven by the conversion of its sizable multi-year OLED-related backlog, which the analyst estimates at around $700M. Longer term, assuming COHR executes on the integration, the addition of Rofin should provide greater balance to COHR by opening up the material processing market as a much larger vertical and giving the company meaningful exposure to fiber lasers.
For this reason, the analyst raised estimates for F17 and F18, driving up the PT to $145 from $130.
Shares of Coherent closed at $125.89 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Finisar (FNSR) PT Raised to $44 at Needham & Company, Estimates Raised Sharply
- BMO Capital Raises Price Target on Dollar Tree (DLTR) to $96; Reiterates Market Perform
- BMO Capital Cuts Price Target on Nielsen Holdings (NLSN) to $45
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Mergers and Acquisitions
Related EntitiesNeedham & Company, Definitive Agreement
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!