Cohu initiated with an Outperform at Baird

As previously reported, Baird initiated coverage of Cohu with an Outperform rating and $65 price target. As a leading provider of semiconductor test handling, thermal control, interface/contactors, and inspection/metrology, the firm sees Cohu as well positioned to capitalize on AI-driven tailwinds, the analyst tells investors. The firm views shares as attractively valued with earnings and margins set to inflect materially off trough levels and should broader semi weakness continue to manifest, it would use this as a buying opportunity, the analyst added.