DA Davidson reiterates Buy rating on Photronics stock amid flat panel strength

Published 28/08/2025, 14:26
DA Davidson reiterates Buy rating on Photronics stock amid flat panel strength

Investing.com - DA Davidson has reiterated its Buy rating and $30.00 price target on Photronics (NASDAQ:PLAB), a photomask manufacturer, following the company’s quarterly earnings report. According to InvestingPro data, the stock is currently trading at $23.97 with a P/E ratio of 12.38, suggesting potential upside based on the analyst target.

The firm noted that Photronics delivered results largely in line with expectations, with strength in the flat panel segment offsetting weakness in integrated circuit (IC) business across Asia.

Photronics issued guidance for the upcoming quarter that suggests similar performance levels to the current period, indicating stability in its near-term business outlook.

Despite ongoing market weakness, DA Davidson highlighted that Photronics remains profitable and well-positioned to proceed with its planned expansion, which will require increased capital spending over the next two to three years.

The research firm maintains its bullish outlook on Photronics, expecting the company to navigate a few more quarters at current performance levels before experiencing a cyclical upturn that would drive both revenue growth and margin expansion.

In other recent news, Photronics Inc. reported its financial results for the second quarter of 2025, revealing that earnings per share fell short of expectations. The company posted an EPS of $0.40, missing the forecast of $0.48, while revenue came in at $211 million, slightly below the anticipated $212 million. In a significant development, Photronics installed a new multi-beam mask writer at its Boise, Idaho facility, marking the first such system for the U.S. merchant market. This new tool is designed to enhance speed and performance for U.S.-built merchant photomask products. Analyst Thomas Diffely from DA Davidson recently adjusted Photronics’ stock price target to $30, down from $35, but maintained a Buy rating on the stock. The adjustment follows a series of announcements, including the departure of the CEO after three years and financial results that did not meet expectations. These developments have been part of the company’s recent news cycle.

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