Citi maintains buy rating and $280 target on Nova Measuring stock

Published 03/06/2025, 13:06
© Benny Gamzo, Nova Measuring Instruments PR

On Tuesday, Citi analysts reiterated their Buy rating for Nova Measuring (NASDAQ:NVMI) Instruments stock, maintaining a price target of $280. Following a meeting with Nova’s CFO Guy Kizner and President & GM of Materials Metrology Adrian Wilson, Citi highlighted the company’s strong position in the semiconductor equipment market.

Citi analysts expressed confidence in Nova’s unique Materials Metrology product line, including Metrion, Elipson, and VeraFlex, which they believe create significant barriers to entry. The analysts noted Nova’s continued outperformance in the wafer fab equipment (WFE) market, driven by advancements in device inflections such as gate-all-around (GAA) technology and advanced packaging. This success is reflected in the company’s impressive 41% revenue growth over the last twelve months.

In addition to the product line strengths, the analysts pointed to Nova’s market share gains, which are projected to increase by 4.5% in 2024. They also expressed confidence in the company’s long-term revenue and earnings per share (EPS) targets, which are expected to reach over $1 billion and approximately $10, respectively. InvestingPro analysis reveals two key insights: the company trades at an attractive PEG ratio of 0.56 and maintains a strong Piotroski Score of 8. Get access to 11 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.

Nova Measuring Instruments remains Citi’s top pick among small to mid-sized semiconductor equipment companies. The analysts’ positive outlook on Nova is based on the company’s strategic positioning and potential for sustained growth in the sector.

In other recent news, Nova Ltd. announced it will hold its annual general meeting of shareholders on June 18, 2025, at its headquarters in Rehovot, Israel. This announcement was made through a Form 6-K filing with the U.S. Securities and Exchange Commission. The company has not disclosed additional details regarding the agenda or resolutions to be discussed at the meeting. In related developments, Cantor Fitzgerald analyst Matthew Prisco adjusted the price target for Nova Measuring Instruments to $300 from $315, while maintaining an Overweight rating. This adjustment followed the company’s Virtual Analyst Day, where a revised long-term model for 2027 was presented. Prisco highlighted the company’s strong fundamentals, such as increasing process control intensity and a growing total addressable market, now projected to reach $4 billion by 2027. The analyst also expressed confidence in Nova’s potential to exceed earnings per share estimates, with a forecast of over $10 in 2026, compared to the consensus estimate of $8.79. These recent developments reflect Nova’s strategic positioning and potential growth in the semiconductor manufacturing sector.

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