D.A. Davidson Reiterates Buy Rating on Photronics, Maintains PT at $30

Photronics, Inc. (NASDAQ:PLAB) is one of the 12 Best Semiconductor Equipment Stocks to Buy Right Now. On August 28, D.A. Davidson reiterated a Buy rating on Photronics, Inc. (NASDAQ:PLAB), maintaining the price target of $30.

D.A. Davidson analyst Thomas Diffely kept the rating on PLAB following Q3 FY2025 results. The company posted $210 million in total revenue, surpassing the top end of expectations and remaining flat year-over-year. Photronics achieved adjusted EPS of $0.51, beating estimates by $0.13. The company’s cash flow represented 25% of revenue, contributing to a solid balance sheet with $576 million in cash and short-term investments.

Diffely remains positive on Photronics as the company reinvests in business expansion, leveraging its strong balance sheet. The company’s focus mainly remains in the U.S. and Asia to drive future revenue and earnings growth. During Q3, Photronics noted 14% year-over-year revenue growth in the flat panel display market, fueled by robust demand in Korea and China for advanced AMOLED technologies. For Q4, the company projects revenue of around $201 million and $209 million, while Wall Street, on average, expects revenue of $204.54 million.

Photronics, Inc. (NASDAQ:PLAB) is a leading manufacturer of photomasks, which are used to transfer circuit patterns onto semiconductor wafers and FPD substrates.

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Disclosure: None. This article is originally published at Insider Monkey.