Nova

Nova Ltd is a semiconductor equipment manufacturer. The company provides metrology solutions for process control used in semiconductor manufacturing. The company offers in-line optical and x-ray stand-alone metrology systems, as well as integrated optical metrology systems. The product range consists of Nova 2040, Nova 3090Next, Nova i500 and i500 Plus, Nova T500, Nova T600, Nova V2600, HelioSense 100, Nova Hybrid Metrology solution, NovaMars. The company generates the majority of its revenue from China. Geographically the company has its business spread across the region of Taiwan, Korea, China, the United States, and Europe.

Nova Measuring

Semiconductor,Or,Microchip,Concepts.technology,Developments.electronic,Industrial

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BofA Securities analyst Vivek Arya previewed fourth-quarter earnings for semiconductor capital equipment (semicap), where reporting kicks off with ASML Holding (NASDAQ:ASML), Lam Research Corp (NASDAQ:

DeepSeek Sell-off Offers Opportunities On Semicaps, Analyst Bumps Up Price Forecasts For KLA, Nova And Camtek

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Why Recursion Pharmaceuticals Shares Are Trading Lower By Around 10%? Here Are Other Stocks Moving In Tuesday&#39;s Mid-Day Session

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Shares of semiconductor companies are trading higher in anticipation of Nvidia's Q4 earnings which are scheduled to be reported after hours today. Additionally, large AI investment announcements from Apple and Meta this week may be buoying the industry.

Benchmark analyst Mark Miller maintains Nova (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVMI#NASDAQ">NVMI</a>) with a Buy and raises the price target from $245 to $295.

Benchmark Maintains Buy on Nova, Raises Price Target to $295

Needham analyst Charles Shi reiterates Nova (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVMI#NASDAQ">NVMI</a>) from Hold to Hold.

Needham Reiterates Hold on Novato Hold

Nova shares are trading higher after the company reported better-than-expected Q4 financial results and issued Q1 guidance above its estimates.

2025 First Quarter Financial Outlook
Management provided an outlook for the first quarter, the period ending March 31, 2025. Based on current estimates, management expects:
<ul>
<li>$205 million to $215 million in revenue</li>
<li>$1.75 to $1.91 in diluted GAAP EPS</li>
<li>$2.00 to $2.16 in diluted non-GAAP&nbsp;EPS</li>
</ul>

Guidance

Nova Expects Q1 Revenue Of $205M-$215M Vs $192.59M Est, Adj EPS Of $2.00-$2.16 Vs $1.86 Est

Earnings

Earnings Beats

Nova Q4 2024 Adj. EPS $1.94 Beats $1.82 Estimate, Sales $194.766M Beat $186.491M Estimate

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Earnings Scheduled For February 13, 2025

BofA Securities analyst Vivek Arya previewed fourth-quarter earnings for semiconductor capital equipment&nbsp;(semicap), where reporting kicks off with ASML Holding (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ASML#NASDAQ">ASML</a>), Lam Research Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LRCX#NASDAQ">LRCX</a>) on January 29 and&nbsp;&nbsp;KLA Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KLAC#NASDAQ">KLAC</a>) on January 30.
Subsector sentiment has broadly improved year-to-date, but Arya noted multiple nuances further complicated by the fallout from DeepSeek&#8217;s possible breakthrough. On one hand, the analyst noted risks like lower AI-related spending if DeepSeek&#8217;s R1 translates to lower compute demand for LLMs, capex cuts across memory (Micron Technology, Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mu#NASDAQ">MU</a>), SK Hynix, Samsung) and Samsung Foundry and consensus estimates still appear high relative to industry growth expectations.
Also Read: <a target="_blank" href="https://www.benzinga.com/25/01/43200948/slm-growth-drivers-expense-control-and-market-share-gains-highlighted-by-analysts" rel="noreferrer noopener">SLM&#8217;s Loan Growth And Expense Control In Focus, Analysts Adjust Price Forecasts</a>
However, and more positively, he noted if DeepSeek means inference is more economical to perform at the edge, it could catalyze a PC/smartphone device upgrade cycle, which would support leading-edge Wafer Fab Equipment (WFE), December&#8217;s China export restrictions less onerous than expected, Taiwan Semiconductor Manufacturing Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TSM#NYSE">TSM</a>) calendar 2025 capex beat &amp; long-term AI sales CAGR of +40% (positive for complexity drivers), and Intel Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INTC#NASDAQ">INTC</a>) capex plans intact.
Amidst these moving parts, Arya noted that his $105 billion WFE view for calendar 2025 still holds and that he expects more alignment on these issues with upcoming reports. Given constructive recent data points for leading-edge foundry/logic and HBM spend, Arya raised his price targets for KLA Corp to $840 from $800, Nova Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVMI#NASDAQ">NVMI</a>) to $270 from $245, and Camtek Ltd (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CAMT#NASDAQ">CAMT</a>) to $100 from $95, and reiterated his positive thesis for the cohort given tech inflection-led growth and strong free cash flow generation.
Arya also raised China WFE this year to $31.5 billion (now down -15% Y/Y) as local Chinese semicaps gain share. The analyst noted that leading-edge foundry/logic and HBM spending are the most robust and favor exposure there.
Consensus estimates for the top 5 semicaps model 10% Y/Y combined growth for calendar 2025 versus 12% Y/Y in early December. While expectations appear more reasonable, this is still above Arya&#8217;s +5% WFE forecast. Ex-ASML, top semicap growth is 8% (versus 11% prior). The analyst&#8217;s combined forecast for Applied Materials, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMAT#NASDAQ">AMAT</a>), Lam Research and KLA Corp are +7.2% Y/Y.
Even after the DeepSeek sell-off, semicap stocks have outperformed the sector year-to-date with Nova Ltd (+13%), KLA Corp (+12%), Applied Materials (+10%), Camtek Ltd (+6%), and Lam Research (+5%) all ahead of the SOX (down 3% year-to-date).
Valuation ranging from 19-30 times NTM P/E has been re-rated to catch up with emerging anticipations for WFE growth, but it is still attractive given that $150 billion WFE by calendar 2030-32 implies +7.5% long-term CAGR, tech inflection-led growth accelerates calendar 2025, and superior 20%- 36% FCF margins versus a median of 14% for S&amp;P 500 industrial companies.
Also Read:
<ul>
<li><a href="https://www.benzinga.com/25/01/43197956/qualcomm-gains-2-billion-boost-from-samsung-s25-chipset-deal-analyst-highlights-growth-in-handsets-and-beyond" target="_blank" rel="noreferrer noopener">Qualcomm Gains $2 Billion Boost From Samsung S25 Chipset Deal, Analyst Highlights Growth in Handsets and Beyond</a></li>
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Photo via Shutterstock.

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Shares of semiconductor companies are trading lower amid AI competition concerns from China's DeepSeek AI model.

Cantor Fitzgerald analyst Matthew Prisco initiates coverage on Nova (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVMI#NASDAQ">NVMI</a>) with a Overweight rating and announces Price Target of $275.

Initiation

Cantor Fitzgerald Initiates Coverage On Nova with Overweight Rating, Announces Price Target of $275

Nova shares are trading higher after Citigroup upgraded the stock from Neutral to Buy and raised its price target from $226 to $240.

Citigroup analyst Atif Malik upgrades Nova (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVMI#NASDAQ">NVMI</a>) from Neutral to Buy and raises the price target from $226 to $240.

Upgrades

Citigroup Upgrades Nova to Buy, Raises Price Target to $240

<ul>
<li>Expands applications' reach to&nbsp;backend semiconductor and Wafer Level Packaging, including Advanced Packaging.</li>
<li>All-cash transaction valued at approximately $60 million.</li>
<li>Acquisition expected to be accretive on non-GAAP net earnings basis within 12 months of closing.</li>
</ul>
REHOVOT, Israel, Nov. 27, 2024 /PRNewswire/ -- Nova (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVMI#NASDAQ">NVMI</a>)&nbsp;announced today that&nbsp;it has&nbsp;entered into a definitive&nbsp;agreement&nbsp;to acquire Sentronics Metrology GmbH, a privately held company headquartered in Mannheim Germany, in an all-cash transaction&nbsp;valued at&nbsp;approximately $60 million.

Nova Acquires Sentronics Metrology To Expand Its Dimensional Metrology Portfolio, In An All-Cash Transaction Valued At ~$60M

Benchmark analyst Mark Miller maintains Nova (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVMI#NASDAQ">NVMI</a>) with a Buy and raises the price target from $240 to $245.

Benchmark Maintains Buy on Nova, Raises Price Target to $245

Needham analyst Charles Shi reiterates Nova (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVMI#NASDAQ">NVMI</a>) with a Hold.

Needham Reiterates Hold on Nova

Nova shares are trading higher after the company reported better-than-expected Q3 EPS and sales and provided Q4 revenue and EPS guidance above analyst estimates.

2024 Fourth Quarter Financial Outlook
Management provided an outlook for the fourth quarter, the period ending December 31, 2024. Based on current estimates, management expects:
<ul>
<li>$181 million to $191 million in revenue</li>
<li>$1.51 to $1.70 in diluted GAAP EPS</li>
<li>$1.72 to $1.91 in diluted non-GAAP EPS</li>
</ul>

Nova Expects Q4 Revenue Of $181M-$191M Vs $171.84M Est, Adj EPS Of $1.72-$1.91 Vs $1.68 Est

Nova Q3 2024 Adj. EPS $1.74 Beats $1.68 Estimate, Sales $178.974M Beat $171.840M Estimate

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Shares of chip stocks are trading lower in sympathy with ASML, which fell after issuing soft guidance. Some stocks in the sector may also be down on reports indicating the US is discussing curbing chip exports to some countries.

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Shares of semiconductor companies are trading higher amid overall market strength following Wednesday's Fed rate cut.

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