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Investing.com - Goldman Sachs initiated coverage on Camtek (NASDAQ:CAMT) with a Neutral rating and a $123.00 price target, representing approximately 4% upside potential. The semiconductor equipment maker currently trades at a P/E ratio of 109.55 with a market capitalization of approximately $5.08 billion.
The investment bank expressed a constructive view on Camtek ’s exposure to high-growth applications such as High Bandwidth Memory (HBM) and chiplets, along with the company’s potential to gain additional market share in the process control segment. This aligns with the company’s impressive 21.12% revenue growth over the last twelve months, with total revenue reaching $485.24 million during this period.
Goldman Sachs noted that as chip architectures become more complex, 3D scaling is expected to make yield preservation more challenging for semiconductor manufacturers.
The firm highlighted Camtek’s continued product innovation, including the recently launched Eagle G5 and Hawk systems, as key factors that will help the company exceed its $500 million revenue target next year.
Despite these positive factors, Goldman Sachs sees a "relatively balanced risk/reward profile" for Camtek stock at current price levels, leading to the Neutral rating.
In other recent news, Camtek reported third-quarter 2025 earnings that exceeded market expectations, with an earnings per share of $0.82 compared to the forecast of $0.81. The company’s revenue reached $126 million, slightly surpassing the anticipated $125.04 million. Stifel responded to Camtek’s strong performance by raising its price target to $120 from $115 and maintaining a Buy rating, citing robust demand in high-performance computing and artificial intelligence applications. Evercore ISI also increased its price target for Camtek to $130 from $100, maintaining an Outperform rating due to the company’s advantageous position in advanced packaging technologies. Jefferies joined in by raising its price target to $130 from $105, noting that Camtek’s results and guidance aligned with expectations but warned of a potential 8% pullback in the first quarter. Meanwhile, Morgan Stanley maintained its Equalweight rating and a $110 price target, reflecting a neutral stance on the company. These developments highlight Camtek’s strong market positioning amid technological transitions and demand in advanced applications.
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