Coherent (COHR) PT Lowered to $310 at Stifel; Buy Pullback
Stifel lowered its price target on Coherent (NASDAQ: COHR) to $310.00 (from $330.00) while maintaining a Buy rating.
Analyst Patrick Newton commented, "Coherent reported F1Q18 (December) results with revenue and pro forma EPS of $477.6 million/$3.54, respectively. March quarter revenue guidance range of $470-$490 million bracketed our prior estimate of $482.5 million, while implied pro forma earnings of $3.40 at the midpoint missed our and consensus expectations of $3.65/$3.58 on FX headwinds (~$0.18/share) and one LineBeam 1000 delivery ($10M ASP) shifting into the June quarter as a critical component supplier is behind on scheduled deliveries. We believe the imperfect guidance will weigh on shares with a beat/raise likely needed to reverse negative sentiment that has pressured shares in recent weeks. Despite a slight moderation to our estimates on the lower outlook, we found management commentary to be bullish on OLED trends beyond current backlog with our own checks continuing to support our positive LT FPD thesis. Accordingly, we maintain our Buy rating but lower our target to $310 on multiple compression."