• Barclays analyst Tom O'Malley downgraded II-VI Inc (NASDAQ: IIVI) to Underweight from Equal Weight with a price target of $56, down from $65.

  • The analyst believes II-VI shares will continue to be an underperformer saying 3D sensing "is now a headwind," and its core business is a low single-digit grower.

  • Additionally, the acquired Coherent Inc (NASDAQ: COHR) business is at a cyclical peak, and post-deal, the combined entity would be more significant than three times levered "into a potential correction," O'Malley notes.

  • Stifel analyst Patrick Ho resumed coverage of Coherent with a Hold rating and $270 PT, implying an 8% upside to reflect the II-VI acquisition price.

  • Though he has argued that there may be other "better fits" for Coherent, Ho acknowledges many synergies in cost and revenue from this deal, bringing greater diversification and long-term accretion potential for II-VI.

  • He has concerns over China's approval since geopolitical reasons could stall the approval process.

  • Price Action: IIVI shares traded lower by 7.59% at $55.99, while COHR was down 1.33% at $249.75 on the last check Monday.

Latest Ratings for IIVI

Oct 2021





Aug 2021




Jul 2021





View More Analyst Ratings for IIVI
View the Latest Analyst Ratings

See more from Benzinga

  • Click here for options trades from Benzinga

  • ContextLogic Bonds With Correos To Expand Presence In Spain

  • BofA Downgrades Vertex – Read Why

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

(305) 707 0888