On Thursday, DA Davidson adjusted its outlook on PDF Solutions Inc. (NASDAQ:PDFS), reducing the price target to $38 from the previous $42, while continuing to recommend the stock as a Buy.
The firm's analysts have revised their assessment of the company, anticipating an acceleration in its business for the current year.
They said "We believe the odds tilt favorably for PDF buyers at current levels and correspondingly rate the shares BUY. Our target (to $38 from $42) values the enterprise at ~25x our newly-established 2027 EPS range of $1.35-$1.50. PDF trades in the bottom quartile of Vertical Software (ETR:SOWGn) peers."
The analysts at DA Davidson have expressed confidence in PDF Solutions' prospects, suggesting that the stock's current trading level may be attractive to investors.
They have factored in the company's anticipated business growth into their long-term financial forecasts, leading to the updated price target.
The firm's analysis points to a potential undervaluation of PDF Solutions when compared to its industry counterparts, which could encourage investment interest in the stock.
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