Cohu Price Target Raised to $27 by B. Riley After Q2 Earnings Beat

B. Riley has increased its price target for Cohu (COHU) from $25 to $27 while maintaining a Buy rating due to the company's better-than-expected Q2 performance. Cohu's growing adaptability of its platforms is gaining traction in the testing sector, leading to improved fundamentals. The company operates in the semiconductor industry and specializes in test and inspection equipment, positioning it well to capitalize on industry trends. Despite recent revenue declines, Cohu's gross margin remains strong at 44.34%. Analyst sentiment remains positive with a target price of $25.75.

Cohu, Inc. (NASDAQ: COHU), a leading supplier of equipment and services optimizing semiconductor manufacturing yield and productivity, reported its fiscal 2025 second quarter (Q2) results. The company reported net sales of $107.7 million and a GAAP loss of $16.9 million or $0.36 per share. For the first six months of 2025, net sales were $204.5 million and GAAP loss was $47.7 million or $1.02 per share [1].

Despite the GAAP loss, Cohu's non-GAAP results showed a net income of $0.7 million or $0.02 per share for Q2 2025. The company also reported a non-GAAP loss of $0.1 million or $0.00 per share for the first six months of 2025. Total cash and investments at the end of Q2 2025 increased by $8.6 million to $209.4 million. Cohu did not repurchase any shares of its common stock during Q2 2025 [1].

Cohu's President and CEO, Luis Müller, commented on the results, stating, "Second quarter 2025 results were in line with guidance, test cell utilization is up a few points across all Cohu segments, and we secured a $28 million design-win order from a customer serving mobile and automotive end-markets" [1].

Analysts have responded positively to Cohu's Q2 performance. B. Riley has increased its price target for Cohu from $25 to $27 while maintaining a Buy rating. The analyst noted that Cohu's growing adaptability of its platforms is gaining traction in the testing sector, leading to improved fundamentals. The company operates in the semiconductor industry and specializes in test and inspection equipment, positioning it well to capitalize on industry trends [2].

Despite recent revenue declines, Cohu's gross margin remains strong at 44.34%. Analyst sentiment remains positive with a target price of $25.75 [2].

Cohu expects third quarter 2025 sales to be in a range of $125 million +/- $7 million. The company will host a live conference call and webcast to discuss Q2 2025 results on July 31, 2025, at 1:30 p.m. Pacific Time/4:30 p.m. Eastern Time [1].

References:
[1] https://www.businesswire.com/news/home/20250731942994/en/Cohu-Reports-Second-Quarter-2025-Results
[2] https://www.bloomberg.com/news/articles/20250703/br-brokerage-raises-price-target-for-cohu-to-27