Recent initial public offering Silvaco earned respectful applause from Wall Street analysts Friday after its first-quarter report. Meanwhile, Silvaco stock is forming an IPO base.
The Santa Clara, Calif.-based company went public on May 9 with its shares priced at $19 each. Silvaco stock notched a record high of 21.59 during its first trading day.
Silvaco provides software for designing semiconductors and for digital twin modeling. Its solutions span technology computer-aided design (TCAD), electronic design automation (EDA) and semiconductor design intellectual property (SIP).
Silvaco's products are used for device development across display, power devices, automotive, memory, high-performance compute, photonics, Internet of Things, and 5G/6G mobile markets.
On Thursday, Silvaco announced its results for the quarter ended March 31. Silvaco earned 7 cents a share, up 75% from a year earlier, on sales of $15.9 million, up 11%.
"We achieved another quarter of stellar financial results including double-digit top-line growth and profitability," Chief Financial Officer Ryan Benton said in a news release.
He added, "Based on our visibility and strong, predictable revenue model, we expect the momentum to continue into the second quarter."
Silvaco Stock Gets Buy Ratings
On the stock market today, Silvaco stock slid 1.4% to close at 17.29. Shares have formed an IPO base with a buy point of 21.59, according to IBD MarketSurge charts.
On Friday, Needham analyst Charles Shi reiterated his buy rating on Silvaco stock with a price target of 28.
"While it was not a surprise that the reported Q1 results largely matched the unaudited results disclosed at the time of the IPO, the company's Q2 and fiscal-year guidance beat respective consensus estimates," Shi said in a client note.
Rosenblatt Securities analyst Blair Abernethy maintained his buy rating on Silvaco stock with a price target of 26.
"We expect its established 'sticky' franchises to continue to benefit from the healthy EDA market backdrop, increasing traction with its new FTCO (Fab Technology Co-Optimization) offering, additional growth from tuck-in acquisitions (cash stood at about $104 million as of May 31), and improving operating margins over the next few years," Abernethy said in a client note.
TD Cowen analyst Krish Sankar kept his buy rating and price target of 23 on Silvaco stock.
Silvaco's Q1 report was a "good showing off the starting blocks," Sankar said in a client note.
Silvaco stock ranks eighth out of 13 stocks in IBD's Computer Software-Design industry group. It has a middling IBD Composite Rating of 50 out of 99, according to IBD Stock Checkup.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
