Needham raises target price to $65 from $54 for Cohu Inc

Needham & Co. has raised its price target for Cohu Inc. (NASDAQ: COHU) to $65 from $54, maintaining its Buy rating for the semiconductor test and inspection equipment manufacturer. The adjustment reflects growing confidence in Cohu’s performance and its expanding role in the high-performance computing (HPC) sector.

Cohu recently reported first-quarter 2026 revenue of $125.1 million, surpassing guidance, and issued second-quarter guidance of $144.0 million, indicating a 15% sequential increase. The company expects 2026 revenue to grow by 20% to 25% year-over-year, with a significant portion of that growth attributed to Eclipse handlers and Neon HBM inspection systems.

Analysts have been increasingly bullish on Cohu, with eight Wall Street analysts currently assigning a Strong Buy rating. The average 12-month price target across these analysts stands at $64.00, with the highest target reaching $80.00 and the lowest at $53.00. Jefferies also recently raised its price target to $60 from $55, citing acceleration in AI and HPC test infrastructure as key drivers.

Despite a recent earnings miss in Q1 2026, where EPS came in at $0.01 versus an expected $0.03, Cohu exceeded revenue expectations and raised its guidance for the June quarter. These developments highlight the company’s strong revenue-generating capabilities and the momentum behind its strategic initiatives.

Needham’s updated price target of $65 is based on 28 times 2027 earnings per share estimate of $1.96. The firm’s analysis underscores the potential for continued growth in Cohu’s HPC segment and broader industrial demand recovery.