DA Davidson assumes coverage on PDF Solutions stock with Neutral rating

Published 08/08/2025, 11:54
DA Davidson assumes coverage on PDF Solutions stock with Neutral rating

Investing.com - DA Davidson has assumed coverage on PDF Solutions Inc. (NASDAQ:PDFS), a $868 million market cap company currently trading at $22.18, with a Neutral rating and a price target of $24.00. According to InvestingPro data, the company has demonstrated solid revenue growth of 11.75% over the last twelve months.

The research firm’s coverage follows PDF Solutions’ second quarter 2025 results, which DA Davidson described as "encouraging" with "positive underlying bookings trends."

DA Davidson highlighted the company’s ongoing evolution in generating value for customers through more efficient operations and data analytics.

The $24 price target represents a multiple of 17 times the company’s projected 2026 EBITDA, according to the research note.

The firm stated it has taken a "balanced stance" on PDF Solutions after weighing the company’s challenges and industry risks against its "unique growth drivers, category leadership, and reasonable valuation."

In other recent news, PDF Solutions Inc. reported its Q1 2025 earnings, exceeding analysts’ expectations. The company achieved earnings per share of $0.21, surpassing the forecast of $0.18, with revenue reaching $47.8 million, slightly above the anticipated $47.76 million. These results highlight the company’s strong financial performance in the recent quarter. Additionally, DA Davidson maintained a Buy rating for PDF Solutions, setting a price target of $24.00. This decision comes amid new export controls affecting the semiconductor industry, particularly impacting companies like Cadence and Synopsys (NASDAQ:SNPS). DA Davidson analysts noted that PDF Solutions’ operations in China differ significantly from these peers, suggesting lower risks for PDF Solutions in the region. The firm emphasized that PDF Solutions’ export nature and the types of integrated circuits it supports set it apart. These recent developments underscore the company’s distinct position in the market amidst regulatory changes.

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