Analyst Krish Sankar of TD Cowen maintained a Buy rating on Silvaco Group, Inc., with a price target of $8.00.
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Krish Sankar has given his Buy rating due to a combination of factors that highlight both opportunities and challenges for Silvaco Group, Inc. While the company’s recent quarterly revenue guidance fell short of market expectations, the strategic acquisitions of Mixel Inc., Tech-X, and the PPC division from CDNS are seen as positive steps that could enhance Silvaco’s market position and growth potential. These acquisitions, along with progress in scaling operations in the power and advanced CMOS markets, are expected to contribute positively to the company’s financial performance.
Despite some setbacks, such as the fourth consecutive quarterly miss and a downward revision of the sales outlook for CY25, Silvaco’s strong margin profile and continued momentum in design wins, including a significant GaN power application, are promising. Sankar believes that with improved execution, Silvaco can achieve a long-term compound annual growth rate in the mid-teens. The company’s strategic focus on mergers and acquisitions is anticipated to drive future growth, with the PPC and Tech-X acquisitions expected to add significant revenue in the coming years.
In another report released yesterday, Rosenblatt Securities also maintained a Buy rating on the stock with a $12.00 price target.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is neutral on the stock.