COHU Should I Buy
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Cohu Inc is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has positive long-term growth drivers in AI and recurring revenue, the recent price drop, lack of strong trading signals, and mixed financial performance suggest waiting for a better entry point.
The stock's technical indicators are mixed. The MACD is positive but contracting, RSI is neutral, and moving averages are bullish. However, the stock is trading near its support level (S1: 27.774), and the recent price drop of -5.29% in the regular market and -2.88% pre-market suggests short-term weakness.
Analysts are optimistic about Cohu's AI-driven growth and recurring revenue potential. Multiple analysts have raised price targets recently, citing AI and auto-industrial market recovery as key drivers. The company's gross margin has improved YoY, and revenue surged by 29.86% in Q4 2025.
The stock experienced a significant price drop in the regular and pre-market sessions. Net income and EPS remain negative despite YoY improvement. No recent news or significant trading trends from hedge funds, insiders, or Congress to act as a catalyst.
In Q4 2025, revenue increased by 29.86% YoY to $122.23M, but net income remained negative at -$22.49M. EPS improved slightly to -0.48, and gross margin increased to 34.07%. Despite revenue growth, profitability remains a concern.
Analysts maintain a positive outlook with multiple Buy ratings and price targets raised to $33-$35. They highlight AI-driven demand, recurring revenue, and auto-industrial market recovery as key growth drivers. However, near-term cyclical pressures and constrained visibility are noted as risks.
