Rosenblatt analyst Blair Abernethy initiated coverage on Silvaco Group Inc (NASDAQ:SVCO) with a Buy rating and a price target of $26.
According to Abernethy, Silvaco, which conducted its initial public offering (IPO) in early May, will continue to benefit from the secular tailwinds driving the electronic design automation (EDA) software market. It is well-positioned to leverage its established technology computer-aided design (TCAD)/EDA software tool franchise to drive healthy organic revenue growth with improving operating margins over the medium term.
Silvaco holds a strong TCAD market position in the display, memory, and power markets, with opportunities for additional growth from its new FTCO solution and SIP portfolio. Abernethy said Silvaco has added capital to support its go-to-market and tuck-in technology ...