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Investing.com - Stifel raised its price target on Camtek (NASDAQ:CAMT) to $98.00 from $84.00 on Monday, while maintaining a Buy rating on the semiconductor equipment maker’s stock. The company, currently trading at $89.74, has demonstrated strong financial health according to InvestingPro metrics, with impressive revenue growth of 32.6% over the last twelve months.
The price target increase follows virtual non-deal roadshow meetings with Camtek’s CFO Moshe Eisenberg last week, where the company indicated it remains on track to deliver modest sequential revenue growth in the second quarter ending June. InvestingPro analysis reveals the company maintains robust financial metrics, including a healthy current ratio of 5.28 and strong cash flow coverage of obligations.
Stifel noted that AI packaging, which represents over 45% of Camtek’s sales, continues to generate high investor interest, with management expressing optimism about mid-term growth prospects in this segment.
The introduction of Camtek’s Hawk metrology/inspection platform is providing a revenue boost with over $50 million in orders this year, with shipments primarily concentrated in the second half of 2025. Early indications suggest strong adoption of the Hawk platform for HBM4 memory in 2026.
Stifel’s new price target reflects a mid-20x price-to-earnings multiple on calendar year 2026 estimates, excluding cash, which aligns with process control peers and Camtek’s 5-year average. The firm also raised its 2026 earnings per share estimates to reflect increasing contribution from the higher-selling-point Hawk platform.
In other recent news, Camtek has been the subject of attention from analysts at Evercore ISI and BofA Securities. Evercore ISI revised its price target for Camtek to $82.00 from the previous $100.00 while maintaining an Outperform rating. This adjustment comes after Camtek’s revenue for the March quarter slightly missed expectations, although earnings per share exceeded estimates by 2% due to stronger gross margins. Meanwhile, BofA Securities maintained a Buy rating with a price target of $80.00, noting that Camtek’s first-quarter sales met expectations and profit per share surpassed forecasts by 2%, driven by a gross margin surprise.
Camtek’s management remains optimistic about the upcoming quarters, highlighting a robust backlog and potential market share gains in Advanced Packaging (NYSE:PKG), specifically in Chip on Wafer on Substrate-Level and High Bandwidth (NASDAQ:BAND) Memory 4. Evercore ISI projects a 10% year-over-year growth in Advanced Packaging revenues by 2026, while BofA Securities anticipates that high-performance computing sales will constitute 45-50% of the mix through 2025. Despite some adjustments in future sales and profit estimates due to limited visibility, BofA Securities points to the increasing traction of Camtek’s new Hawk and G5 tools as positive indicators. Both firms highlight the potential for Camtek to expand its market share and margins, with BofA observing no significant competitive pressures from KLA.
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