Needham & Company LLC Reaffirms Buy Rating for Coherent (COHR)

Coherent (NASDAQ:COHR)‘s stock had its “buy” rating restated by equities researchers at Needham & Company LLC in a research note issued to investors on Thursday, Marketbeat reports. They currently have a $294.00 price target on the scientific and technical instruments company’s stock, down from their prior price target of $330.00. Needham & Company LLC’s target price points to a potential upside of 40.26% from the stock’s previous close.

The analysts wrote, “IPHI reported in-line 4Q17 results but provided 1Q18 guidance meaningfully below our and the Street’s estimates that were reduced just three weeks ago. While IPHI continues to see an inventory correction in the China coherent long-haul/ metro market, other recent market developments have led to newer headwinds in the near term. Management still expects to see a recovery in its TIA/driver business starting in 2Q18 and continuing throughout FY18, and new products ramps in 2H18 are expected to contribute to higher GMs and EPS growth. While we remain positive about IPHI’s long-term prospects, we lower our estimates and PT to $35 from $45 to reflect the lower revenue trough. We are aggressive buyers below $26.””

Several other analysts have also commented on COHR. Benchmark increased their target price on shares of Coherent from $290.00 to $310.00 and gave the company a “buy” rating in a research note on Wednesday, November 8th. Barclays upped their price target on shares of Coherent from $285.00 to $315.00 and gave the company an “overweight” rating in a research report on Wednesday, November 8th. BidaskClub downgraded shares of Coherent from a “buy” rating to a “hold” rating in a research report on Friday, January 26th. Stifel Nicolaus upped their price target on shares of Coherent from $290.00 to $330.00 and gave the company a “buy” rating in a research report on Wednesday, November 8th. Finally, Zacks Investment Research upgraded shares of Coherent from a “hold” rating to a “buy” rating and set a $337.00 price target for the company in a research report on Wednesday, January 10th. Two investment analysts have rated the stock with a hold rating and ten have given a buy rating to the stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $312.22.

Coherent (NASDAQ:COHR) traded up $3.72 during mid-day trading on Thursday, reaching $209.61. 1,159,117 shares of the company traded hands, compared to its average volume of 756,366. Coherent has a fifty-two week low of $179.60 and a fifty-two week high of $329.00. The firm has a market capitalization of $5,202.94, a price-to-earnings ratio of 23.87 and a beta of 0.65. The company has a current ratio of 3.18, a quick ratio of 2.14 and a debt-to-equity ratio of 0.42.

Coherent (NASDAQ:COHR) last released its earnings results on Wednesday, February 7th. The scientific and technical instruments company reported $3.54 EPS for the quarter, beating the consensus estimate of $3.52 by $0.02. Coherent had a net margin of 11.79% and a return on equity of 29.82%. The business had revenue of $477.60 million during the quarter, compared to analyst estimates of $474.21 million. During the same period in the prior year, the business earned $2.57 earnings per share. The business’s quarterly revenue was up 38.0% on a year-over-year basis. equities analysts forecast that Coherent will post 15.56 earnings per share for the current year.

Coherent announced that its Board of Directors has approved a stock buyback plan on Wednesday, February 7th that permits the company to repurchase $100.00 million in shares. This repurchase authorization permits the scientific and technical instruments company to reacquire shares of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its shares are undervalued.

In related news, VP Bret Dimarco sold 1,195 shares of the company’s stock in a transaction that occurred on Tuesday, November 14th. The shares were sold at an average price of $301.89, for a total value of $360,758.55. Following the completion of the sale, the vice president now owns 2,198 shares in the company, valued at approximately $663,554.22. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Stephen A. Skaggs sold 500 shares of the company’s stock in a transaction that occurred on Monday, November 13th. The shares were sold at an average price of $308.97, for a total transaction of $154,485.00. Following the completion of the sale, the director now owns 11,000 shares of the company’s stock, valued at approximately $3,398,670. The disclosure for this sale can be found here. In the last 90 days, insiders sold 9,569 shares of company stock valued at $2,898,201. 1.40% of the stock is owned by insiders.

Institutional investors have recently added to or reduced their stakes in the business. Tygh Capital Management Inc. increased its stake in Coherent by 36.4% in the 3rd quarter. Tygh Capital Management Inc. now owns 35,672 shares of the scientific and technical instruments company’s stock valued at $8,389,000 after buying an additional 9,529 shares during the period. Flinton Capital Management LLC increased its stake in Coherent by 73.8% in the 2nd quarter. Flinton Capital Management LLC now owns 1,168 shares of the scientific and technical instruments company’s stock valued at $263,000 after buying an additional 496 shares during the period. Gotham Asset Management LLC acquired a new position in Coherent in the 2nd quarter valued at approximately $458,000. Affinity Wealth Management increased its stake in Coherent by 39.5% in the 3rd quarter. Affinity Wealth Management now owns 2,505 shares of the scientific and technical instruments company’s stock valued at $589,000 after buying an additional 709 shares during the period. Finally, Jag Capital Management LLC acquired a new position in Coherent in the 4th quarter valued at approximately $13,008,000. Hedge funds and other institutional investors own 96.63% of the company’s stock.

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About Coherent

Coherent, Inc is a photonics manufacturer. The Company is engaged in designing, manufacturing, servicing and marketing of lasers and related accessories for a range of scientific, commercial and industrial applications. It operates through two segments: Specialty Lasers and Systems (SLS) and Commercial Lasers and Components (CLC).

Analyst Recommendations for Coherent (NASDAQ:COHR)

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