Cantor Fitzgerald cuts Nova Measuring stock target to $300

Published 14/03/2025, 12:32
© Benny Gamzo, Nova Measuring Instruments PR

On Friday, Cantor Fitzgerald analyst Matthew Prisco adjusted the price target for Nova Measuring (TASE:NVMI) Instruments (NASDAQ:NVMI) to $300 from the previous $315, while keeping an Overweight rating on the stock. Currently trading at $215.22, NVMI has drawn significant analyst attention, with InvestingPro data showing six analysts recently revising their earnings estimates upward. The adjustment followed the company’s Virtual Analyst Day, the first such event since 2022. Prisco noted that the long-term model for calendar year 2027 (CY27) was revised upwards, aligning with expectations that had been previewed earlier.

Prisco highlighted that the fundamental aspects of Nova Measuring Instruments, such as increasing process control intensity, the adoption of its unique solutions, and leverage to technological advancements in semiconductor manufacturing, remain strong. This strength is reflected in the company’s impressive 29.83% revenue growth over the last twelve months and a "GREAT" financial health rating according to InvestingPro analysis. Additionally, the company’s total addressable market (TAM) is projected to grow, with management now forecasting a $4 billion market opportunity in CY27, up from the previous estimate of $3 billion.

The analyst expressed confidence in the potential for earnings per share (EPS) to surpass estimates, citing a conservative management team. Prisco’s outlook suggests that Nova Measuring Instruments could see an EPS of over $10 in CY26, compared to the consensus estimate of $8.79 and the management’s CY27 target model of $10. According to Prisco, Nova Measuring Instruments is on track with its plans and is expected to continue benefiting from its position in the market, offering an excellent risk/reward profile for investors. For a deeper understanding of NVMI’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which includes detailed analysis of the company’s financial health, valuation metrics, and growth potential.

In other recent news, Nova Measuring Instruments reported robust financial results for the fourth quarter of 2024, with earnings per share (EPS) of $1.94, surpassing the forecasted $1.69. The company’s revenue reached $194.8 million, exceeding expectations of $177.86 million. Following these impressive results, Benchmark and Citi analysts raised their price targets for Nova Measuring Instruments to $295 and $290, respectively, while maintaining a Buy rating on the stock. Nova’s growth was fueled by strong sales in materials, chemical, and dimensional metrology, with a notable 19% year-over-year increase in service sales. The acquisition of Sentronics is expected to enhance Nova’s position in critical dimensions metrology and contribute to its double-digit growth in advanced packaging. Analysts at Citi revised their EPS estimates for 2025 and 2026 to $7.99 and $8.80, respectively, highlighting the company’s potential to outperform the wafer fabrication equipment market. Nova’s management remains confident in achieving its $500 million revenue target from gate-all-around technology by 2026. These developments indicate a positive outlook for Nova Measuring Instruments as it continues to capitalize on market opportunities.

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