Silvaco initiated with a Buy at Needham

Needham analyst Charles Shi initiated coverage of Silvaco (SVCO) with a Buy rating and $28 price target. The firm is positive on the company’s position as a major provider of technology computer-aided design, TCAD, the foundational EDA that enables design technology co-optimization, DTCO, in today’s semiconductor manufacturing and design, the analyst tells investors in a research note. Needham believes that Silvaco can improve its operating margin to 25% while maintaining double-digit growth over the coming years. The stock also provides investors looking to invest in EDA a “rare small-cap alternative” to Cadence Design (CDNS) and Synopsys (SNPS), the firm added.