PDF Solutions price target lowered to $29 from $36 at Northland

Northland lowered the firm’s price target on PDF Solutions (PDFS) to $29 from $36 and keeps an Outperform rating on the shares. The balance sheet is materially weaker since the $130M acquisition of secureWise, while PDF is also ramping capex to support expected sales of eProbe systems, notes the analyst, who argues that PDF “cannot support its two businesses” given the state of its cash flow and balance sheet. PDF “needs to sell the eProbe business, raise money, or take on more debt,” the analyst contends.