Market Overview

20% Upside Seen For Cohu Shares As Needham Takes A Bullish View

20% Upside Seen For Cohu Shares As Needham Takes A Bullish View

Shares of Cohu, Inc. (NASDAQ: COHU) gained more than 10 percent Monday morning and hit a new 52-week high of $22.84 — in part due to an upgrade by analysts at Needham. The firm's Y. Edwin Mok upgraded Cohu's stock rating from Hold to Buy with a newly established $24 price target amid multiple drivers ahead.

Cohu, a supplier of semiconductor test and inspection handlers and other test modules, boasts the highest level of exposure to the growing Auto IC space, Mok commented in his upgrade note. In fact, auto IC sales are expected to consistently grow at a 4 to 6 percent rate over the next few years company's differentiated technical capabilities, especially in thermal, could result in new contract wins.

Cohu is also well positioned to gain market share in both handlers and contactors, which is the company's core business, Mok continued. Within the handlers segment, Cohu is winning new positions at a diversified Korean chip maker and at a new European Auto IC customer. and these wins alone will add approximately two points of handler share. Within the contactor segment, the company's exposure while small at $40 million or 11 percent of total sales, there is room for a 20 percent growth rate over the coming years (see Mok's track record here).

Finally, Cohu's recently launched new products, including the WLCSP prober, inspection module, and system-level test solution, are individually small at around $10 million in sales each. However, these new products also represents a diversified product portfolio and exceed management's own conservative projections.

At time of publication, shares of Cohu were up 13.45 percent at $22.73.

Related Links:

Marc Chaikin's Bullish Thesis On 3 Small-Cap Tech Stocks

Cohu Launches Next Generation 32-Position Turret Handler

Latest Ratings for COHU

Nov 2020NeedhamMaintainsBuy
Oct 2020NeedhamMaintainsBuy
Jun 2020NeedhamInitiates Coverage OnBuy

View More Analyst Ratings for COHU
View the Latest Analyst Ratings


Related Articles (COHU)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas News Upgrades Price Target Analyst Ratings Movers Tech Best of Benzinga

Latest Ratings

OCXBTIGInitiates Coverage On5.0
GCMGWilliam BlairInitiates Coverage On
PDCraig-HallumInitiates Coverage On41.0
CAPLWells FargoDowngrades
MMPWells FargoDowngrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at