Needham Reiterates Buy Rating on Silvaco Group Inc (SVCO)

Needham analyst Charles Shi reiterated a Buy rating and $10.00 price target on Silvaco Group Inc (NASDAQ: SVCO).

The analyst commented: "Silvaco reported strong 4Q25 results with revenue and NG EPS ahead of guidance/our estimates. Results in segments were mixed, with IP and TCAD growing QoQ, but EDA declining in the quarter. 1Q26 revenue guidance of $17MM was ahead of our expectations, with continued strength in TCAD, as well as non-GAAP gross margins continuing at their recently higher levels of ~85%. Looking forward to 2026, low to mid teen growth is expected on the top line, with TCAD and IP growing during the year. OpEx reductions are now expected at $20MM annualized (vs. $15MM prior) exiting CY26 vs. the 3Q25 peak, driving the company to return to (non-GAAP) profitability as early as 2Q26. We are rolling our estimates to CY27 and reiterating our Buy rating at this time with a $10PT, which is based on 4x EV/sales multiple on our CY27 revenue estimate."

For an analyst ratings summary and ratings history on Silvaco Group Inc click here. For more ratings news on Silvaco Group Inc click here.

Shares of Silvaco Group Inc closed at $5.03 yesterday.

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