Craig-Hallum Sees Huge Upside In PDF Solutions Believing Intel As Possible Customer

Craig-Hallum analyst Christian Schwab raised the price target on PDF Solutions Inc PDFS to $44 from $28, implying a 42% upside, and reiterated a Buy.
The analyst notes PDF reported better-than-expected Q3 results with solid growth in its Analytics business, up 39% sequentially and 90% year-over-year, more than offsetting declines in its legacy IYR business.
Strength will likely continue with solid bookings in the quarter that exceeded bookings levels of Q3 last year, which notably included the $50 million contract from the company's Advantest partnership.
Notably included in the bookings was a follow-on multi-year contract with the customer that in Q2 PDF booked a "quick start" Analytics contract that Schwab believes to be Intel Corp INTC.
He thinks the opportunity with the latter is significant and would expect them to be a 10%+ customer in the future.
Price Action: PDFS shares traded higher by 22.3% at $30.9 on the last check Wednesday.