Silvaco price target lowered to $19 from $26 at Needham

Needham analyst Charles Shi lowered the firm’s price target on Silvaco to $19 from $26 after its negative Q3 revenue pre-announcement and FY24 guidance cut but keeps a Buy rating on the shares. The larger part of the expected Q3 miss is due to delayed closing of a $5M contract in October rather than in September and investors may look through that timing issue, though the reduction to the full-year revenue outlook is also largely due to newly emerged weakness of China lower/automotive semis, which Silvaco management believes will hurt order intakes in the second half of the year, the analyst tells investors in a research note.