Bank Hapoalim Cuts Camtek Price Target to $169, Keeps Outperform Rating

Bank Hapoalim lowered its price target for Camtek to $169 from $183 while retaining its outperform recommendation and high-risk classification, according to a November 8 research assessment. The revised target follows the Israeli semiconductor-inspection company's quarterly results and a reduction in the bank's earnings assumptions. The bank cut its 2027 earnings-per-share forecast to $5.07 from $5.21 and reduced the earnings multiple used in its valuation to 30 from 32. Its analysis identified higher component and material costs and a stronger shekel as pressures on gross profitability, with improvement expected to be more gradual. The bank retained revenue forecasts of approximately $597 million for 2026, $806 million for 2027 and $1.2 billion for 2029. Those figures are the bank's estimates. Camtek, based in Migdal HaEmek, reported on November 4 that third-quarter revenue reached $161.3 million, up 28% from a year earlier and 21% from the preceding quarter. Non-GAAP gross margin was 51.1%, compared with 51.5% a year earlier. Adjusted net income was $50.3 million, or $0.99 per diluted share; net income under generally accepted accounting principles was $42.8 million. Chief executive Rafi Amit said the company had “visibility a year ahead” when it issued those results. Management retained its revenue outlook of approximately $180 million for the fourth quarter, approximately $595 million for full-year 2026 and more than $800 million for 2027. These company outlooks are separate from Hapoalim's revised valuation and remain forecasts.