
Cohu (COHU) Stock Forecast & Price Target
Cohu (COHU) Analyst Ratings
Bulls say
Cohu Inc has demonstrated a structurally improved cross-cycle profitability, indicating a solid foundation for growth as it transitions towards higher-margin and recurring revenue products, particularly in the automated test equipment (ATE) and test contactor sectors. The company is positioned to capitalize on potential revenue increases in the range of $25-$30 million this year from new platforms and wins, which align with its existing leadership in test handler products, thereby driving margin expansion and asset efficiency. Additionally, Cohu's optimism regarding mid-year market recovery, along with positive trends in mobile and opportunities in new design sectors, suggests a favorable outlook for sustained growth and profitability beyond 2025.
Bears say
Cohu Inc's recent financial performance has led to a negative outlook, as the company reported a 1% decline in revenue quarter-over-quarter, falling slightly below its guidance. The ongoing weakness in demand from core auto, industrial, and mobile sectors, highlighted by the delayed shipments due to a $7 million order pushout and additional inventory reserve charges, further complicates recovery efforts. Additionally, while management has decreased the break-even revenue threshold from $108 million to $104 million, the overall landscape of continued inventory digestion and rising operational expenditures suggests persistent challenges ahead for Cohu's financial stability.
This aggregate rating is based on analysts' research of Cohu and is not a guaranteed prediction by Public.com or investment advice.
Cohu (COHU) Analyst Forecast & Price Prediction
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