Needham & Company Raises Price Target Following Coherent's (COHR) Record 1Q Bookings

Needham & Company reiterated a Buy rating on Coherent (NASDAQ: COHR), and raised the price target to $85.00 (from $68.00), following the company's 1Q earnings report. Stronger margins resulted in non-GAAP EPS coming in at $0.99, solidly above Street expectations of $0.89. COHR’s microelectronics business, which includes its Linebeam equipment for the display market, posted bookings of $187M, up 162% y/o/y and 94% sequentially. Earlier this month, COHR received an additional OLEDrelated order totaling over $150M, with significant follow-on orders expected. FQ2 guidance was below Street expectations, although mgmt suggested that full-year consensus numbers going into the FQ1 print were most likely conservative.

Analyst James Ricchiuti commented, "COHR delivered better than expected FQ1 EPS despite revs coming in below guidance. The real story, however, was bookings, which surged 68% y/o/y to $273M driven by robust orders for its Linebeam equipt to support the large OLED capacity build. Earlier this month, COHR received an additional OLEDrelated order totaling over $150M, with significant follow-on orders expected. The backlog and additional orders to follow will ship in F2H and F17. While mgmt acknowledged choppiness in its other verticals, the ramp in the display business should more than make up for the macro-related weakness. FQ2 guidance was below Street expectations, although mgmt suggested that full-year consensus numbers going into the FQ1 print were most likely conservative. We are raising estimates for this year and F17. Reiterate Buy."

For an analyst ratings summary and ratings history on Coherent click here. For more ratings news on Coherent click here.

Shares of Coherent closed at $62.54 yesterday.

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