Silvaco Group stock price target lowered to $8 by TD Cowen on execution concerns

Published 08/08/2025, 14:38
Silvaco Group stock price target lowered to $8 by TD Cowen on execution concerns

Investing.com - TD Cowen has lowered its price target on Silvaco Group Inc (NASDAQ:SVCO) to $8.00 from $10.00 while maintaining a Buy rating on the semiconductor design software company. For a comprehensive analysis of Silvaco’s valuation metrics and growth potential, investors can access the detailed InvestingPro Research Report.

The firm cited execution concerns following Silvaco’s June quarter results and revenue guidance that came in below Street expectations, suggesting the company needs improved execution and clearer growth expectations to boost investor confidence.

Despite the near-term challenges, TD Cowen highlighted several positive developments supporting its long-term growth thesis for Silvaco, including recent acquisitions of Mixel Inc., Tech-X, and Cadence Design (NASDAQ:CDNS) Systems’ PPC division.

The analyst also noted progress in scaling the company’s FTCO business, pointing specifically to its relationship with Micron (NASDAQ:MU) and expansion into power and advanced CMOS markets as positive indicators.

TD Cowen suggested that patient investors could benefit from leverage in Silvaco’s business model once execution improves, maintaining its Buy rating despite the reduced price target.

In other recent news, Silvaco Group Inc. reported its second-quarter 2025 earnings, which revealed a notable miss on both earnings per share (EPS) and revenue forecasts. The company recorded an EPS of -$0.16, missing the expected $0.12, and revenue came in at $12.05 million, representing a 19% decline from the previous year. This revenue figure also fell short of Rosenblatt’s forecast of $15.4 million. In response to these results, Rosenblatt lowered its price target for Silvaco Group to $12.00 from $14.00, although it maintained a Buy rating. Gross bookings for the quarter were $12.9 million, which did not meet expectations. However, the trailing twelve-month Annual Contract Value base grew 26% year-over-year to $55.9 million, aided by acquisitions. These developments have captured the attention of investors and analysts alike.

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