DA Davidson reiterated its Buy rating on PDF Solutions Inc. (NASDAQ:PDFS) and maintained a $36.00 price target in a research note published Tuesday, ahead of the company's fourth-quarter 2025 results scheduled for February 12 (just two days away). The $36.00 target implies roughly an 18% upside from a cited current share price of $30.50, though InvestingPro data referenced in the same note suggests the shares may be trading above their Fair Value.
The firm described the outlook heading into the earnings release as a "constructive setup," pointing to a revenue picture that still leaves room within management's longer-term growth framework. DA Davidson noted that current 2026 estimates sit below PDF Solutions' three-to-five-year total revenue growth plan, even as the company has reported robust top-line expansion recently - revenue grew 21.23% over the trailing twelve months.
Key drivers for an upside print in fourth-quarter 2025, according to DA Davidson, include continued ramping activity from PDF Solutions' largest customer. That customer accounted for approximately 38% of the company's total revenue in the third quarter of 2025, making its trajectory material to the near-term revenue outlook. The research note also highlighted additional revenue contribution potential from wider adoption of the company's e-Probe product.
DA Davidson's $36.00 valuation is derived from a multiple-based approach - specifically, 23 times the firm's 2026 EBITDA estimate for PDF Solutions. The firm raised that price target from a prior $34.00 while preserving its Buy recommendation, a change that followed the company’s user conference and its first analyst day since 2023, during which management raised its long-term financial targets.
Other broker commentary ahead of the February 12 results echoed a favorable stance. Rosenblatt Securities reiterated a Buy rating and kept a $34.00 price target, forecasting fourth-quarter and full-year 2025 results broadly in line with expectations. Rosenblatt projects Analytics revenue to rise about 23% year-over-year and to account for roughly 94% of total company revenue, with recent acquisitive activity - specifically the SecureWISE deal - expected to contribute to that mix.
The combination of an expected customer ramp, growing e-Probe uptake and contributions from the SecureWISE acquisition underpin the analyst optimism reflected in the recent notes. Investors will be watching the February 12 release for confirmation of those dynamics and for how management frames near-term and longer-term revenue trajectories.
Context and next steps
- PDF Solutions is due to report fourth-quarter and fiscal year 2025 results on February 12.
- DA Davidson's price target of $36.00 is based on 23x its 2026 EBITDA estimate.
- Rosenblatt maintains its Buy rating with a $34.00 target and expects Analytics revenue to grow 23% year-over-year.