On Tuesday, DA Davidson maintained its Buy rating and $65.00 price target for Kulicke and Soffa Industries (NASDAQ: KLIC), following the company's disclosure of unauthorized network access attempts. Kulicke and Soffa reported the security breach in an 8-K form, stating the incident occurred on May 12, 2024. The ongoing investigation into the cyber attack has so far not indicated any data theft, and the company does not anticipate the event to significantly affect its third fiscal quarter performance.
The company's prompt response to the cybersecurity breach has been noted, and despite the incident, the outlook for Kulicke and Soffa remains unchanged. DA Davidson has adjusted its reported quarter non-GAAP figures to align with the consensus and to account for the cancellation of Project W. This adjustment has not dampened the firm's optimism about the company's growth prospects.
DA Davidson's analysis suggests a strong growth trajectory for Kulicke and Soffa over the coming years. The firm's confidence is bolstered by the expectation of increased demand in the semiconductor and memory markets in the second half of 2024, with even greater activity projected for 2025. The attractive risk-reward profile is cited as a key factor in maintaining the positive stance on the company's stock.
The $65 price target represents approximately 15 times the projected pro-forma earnings per share for the calendar year 2025, plus net cash. DA Davidson's reiteration of the Buy rating reflects a continued bullish outlook for Kulicke and Soffa, suggesting potential upside as market conditions improve.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.