Update shared on05 Sep 2025
Analysts reduced their price target for PDF Solutions due to concerns over a weaker balance sheet and increased capital needs following the $130M secureWise acquisition and eProbe expansion, though the consensus target remains unchanged at $30.00.
Analyst Commentary
- Weaker balance sheet following the $130M acquisition of secureWise.
- Increased ramp-up of capital expenditures to support expected sales of eProbe systems.
- Concerns that current cash flow and balance sheet cannot adequately support both core businesses.
- The company faces the need to sell the eProbe business, raise capital, or take on more debt.
- Reduced price target reflects these financial and operational pressures.
What's in the News
- PDF Solutions will host its 2025 Analyst Day and Users Conference on December 3, 2025, in Santa Clara, featuring presentations from CEO John K. Kibarian and CFO Adnan Raza (Periodicals, Key Developments).
- The company reaffirmed its 2025 earnings guidance, maintaining expectations for 21% to 23% annual revenue growth, with second half revenue growth projected above 20% versus last year’s strong period (Key Developments).
- No share repurchases were made in Q2 2025 under the existing buyback program, with zero shares repurchased and no capital deployed between April 1 and June 30, 2025 (Key Developments).
- PDF Solutions continues active engagement with investors through scheduled Analyst/Investor Day events, reflecting ongoing transparency and communication efforts (Key Developments).
- Management’s participation in the upcoming Analyst Day signals a continued commitment to discussing strategy and financial performance directly with analysts and investors (Periodicals).
Valuation Changes
Summary of Valuation Changes for PDF Solutions
- The Consensus Analyst Price Target remained effectively unchanged, at $30.00.
- The Discount Rate for PDF Solutions remained effectively unchanged, at 10.47%.
- The Future P/E for PDF Solutions remained effectively unchanged, moving only marginally from 34.62x to 34.63x.
Disclaimer
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