
Cohu (COHU) Stock Forecast & Price Target
Cohu (COHU) Analyst Ratings
Bulls say
Cohu Inc has shown strong revenue growth, particularly within its Communications segment, which recorded $818 million, accounting for 57% of total revenues and reflecting a year-over-year increase of 58%. Notably, the Datacom market surged by 79% year-over-year, driven by high demand for AI-related 800G transceivers and robust 400G demand, indicating a solid upward trend in revenue generation. Additionally, the Telecom sector advanced 11% year-over-year and 16% quarter-over-quarter, fueled by heightened activity from hyperscalers in boosting intra-data center connectivity through advanced ZR/ZR+ modules, further reinforcing the positive outlook for the company's financial performance.
Bears say
Cohu Inc's financial outlook is negatively impacted by its substantial total outstanding debt, which amounted to $3.86 billion at the end of the most recent quarter, only slightly reduced from previous levels despite debt retirement efforts. Furthermore, the company's traditional Telecom products have experienced prolonged weakness due to customer inventory buildups following supply chain disruptions from the COVID-19 pandemic, which has resulted in a challenging macroeconomic environment. Additionally, the bear case assumptions indicate potential slower growth in the AI/ML transceiver market and a delayed recovery in other markets, highlighting the fragility of Cohu's performance amidst broader economic uncertainties.
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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