Needham & Company Downgrades Coherent (COHR) to Hold after Q4 Miss, Weak Outlook

Needham & Company downgraded Coherent (NASDAQ: COHR) from Buy to Hold following weak Q4 results.

The firm comments, "COHR reported weaker than expected F4Q results after the market close yesterday due in part to delays in receiving key components from a vendor in its flat panel display business. Bookings were down 23% sequentially, mostly due to a sharp drop in orders in its microelectronics business, although the outlook for its other markets is mixed. FQ1 guidance was much weaker than expected, which combined with the FQ4 miss is likely to hit the stock this morning. Although the shares may look relatively inexpensive trading at 10x our F14 non-GAAP EPS estimate, adjusted for net cash, we believe further multiple compression is possible given concerns about execution in the display business and additional potential fallout from the slowing global economy."

For an analyst ratings summary and ratings history on Coherent click here. For more ratings news on Coherent click here.

Shares of Coherent closed at $45.65 yesterday.

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