Rosenblatt Securities has reiterated a Buy recommendation on PDF Solutions Inc. (NASDAQ:PDFS) and held its $34.00 price target as the company prepares to report fourth-quarter and fiscal 2025 results on February 12. At a recent stock price of $29.07, the analyst target implies roughly 17% upside; however, the shares have declined 6.92% over the past week.
Rosenblatt’s baseline expects PDF Solutions to deliver results that are in line with its current estimates for Q4 and fiscal 2025. The firm projects Analytics revenue will expand about 23% year-over-year and that Analytics will account for roughly 94% of total revenue in the period under review. Rosenblatt notes that the SecureWISE acquisition is expected to be a positive contributor to this Analytics growth trajectory.
Data from InvestingPro cited by Rosenblatt indicates the company’s revenue growth for the trailing twelve months was 21.23%, a figure that aligns with the firm’s view of continued momentum in the company’s core business. Rosenblatt has kept its internal estimates and the $34 price target in place while awaiting the Q4 report and additional clarity on PDF Solutions’ performance in 2026.
Analysts at Rosenblatt are monitoring several operational and commercial indicators closely. Key items include progress on customer uptake of the Exensio platform, the cadence and outcomes of contract renewals and expansion module orders, and changes in customer trial activity that could translate into deployments of the Design for Inspection (DFI) solution. These metrics are viewed as important signals for future revenue visibility.
On the backlog front, PDF Solutions reported a backlog of $292 million at the end of Q3, representing a 25% increase quarter-over-quarter. Rosenblatt expects that backlog to be largely preserved into Q4 or to show modest growth in the quarter, a dynamic the firm will watch for confirmation once the company releases its results.
Separately, DA Davidson moved its price target for PDF Solutions to $36 from $34 and maintained a Buy rating. That adjustment followed the company’s user conference and its first analyst day since 2023, during which PDF Solutions updated its long-term financial targets. DA Davidson cited those revised targets as a material factor behind the higher price target, interpreting the changes as evidence of an improved growth outlook or a strategic shift in financial planning and expectations.
Investors will be watching both the upcoming Q4 results and any further commentary that sheds light on the company’s 2026 outlook and backlog trends. With analysts maintaining a generally positive stance on the shares, near-term share movement will likely depend on whether reported results and customer adoption metrics meet or diverge from the current expectations.
Summary
Rosenblatt reiterated a Buy rating and $34 target for PDF Solutions ahead of the company’s Q4/FY25 results, projecting 23% Analytics revenue growth and noting the SecureWISE acquisition as a tailwind. DA Davidson separately raised its target to $36 after the company updated long-term financial targets at a user conference and analyst day. Key items to watch include Exensio adoption, DFI deployments, contract renewals, and backlog trends.
Key points
- Rosenblatt reaffirmed Buy and a $34 price target; current share price of $29.07 implies ~17% upside but shares have fallen 6.92% in the last week.
- Rosenblatt expects Analytics revenue to grow 23% year-over-year, comprising about 94% of total revenue; SecureWISE acquisition expected to help.
- DA Davidson raised its price target to $36 from $34 after the company updated long-term financial targets at its user conference and analyst day.
Risks and uncertainties
- Actual Q4/FY25 results could diverge from Rosenblatt’s in-line expectation; this would affect investor sentiment and valuation.
- Maintenance or growth of the $292 million backlog is uncertain until Q4 disclosure; backlog erosion would reduce near-term revenue visibility.
- Customer adoption metrics for Exensio and DFI - including contract renewals, expansion modules, and trial-to-deployment conversion - remain key variables that could impact future revenue.