Cohu (COHU) PT Lowered to $36 at Needham & Company

Needham & Company analyst N. Quinn Bolton lowered the price target on Cohu (NASDAQ: COHU) to $36.00 (from $42.00) while maintaining a Buy rating.

The analyst commented, "Cohu reported 1Q22 results above consensus and towards the high-end of guidance, and guided 2Q22 slightly above consensus expectations. The most notable takeaway from 1Q22 was Cohu's ability to navigate supply challenges and post a record NG GM of 46.1% (160bps above guidance), driven by growth in semiconductor test and an overall better product mix. Ever since COHU guided GM down 310bps after 1Q21, the stock has been under pressure, and GM hasn't approached the 1Q21 level until now (50bps higher). In our opinion, this has been a meaningful overhang on the stock. However, with the recovery in GM, share gains in test, a compressed multiple (~9x CY23 EPS), and growing product traction, we believe current levels are very compelling for investors. We are trimming our PT to $36 to reflect multiple compression across the group."

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