Northland on Tuesday revised its view of Camtek Ltd., moving the stock from an Outperform rating to Market Perform while increasing its price target to $150 from $128. The firm justified the higher target by incorporating its calendar year 2027 forecasts into the valuation, even as it tempered the recommendation amid valuation and operational signals it sees as constraining near-term upside.
At the time of the note Camtek was trading at $160.44, about 0.98% shy of its 52-week high of $164.21. The shares carry a price-to-earnings ratio of 160.65. Data from InvestingPro referenced in the note indicates Camtek is being priced at elevated multiples across a range of valuation metrics.
Northland described recent company results as essentially in line with expectations and noted guidance that tracked consensus estimates. The analyst house also observed that while Camtek expects to expand its market share this year, its performance has lagged that of some peers.
The firm highlighted inventory dynamics as a point of caution, saying declines in both short-term and long-term inventory balances should not be read as evidence of sustained growth. To underpin its updated target, Northland introduced calendar year 2027 estimates that assume earnings of $3.74 per share on revenue of $600 million.
Financial health assessments cited in the note remain favorable. Camtek is reported to hold a strong current ratio of 7.58 and to operate with a moderate level of debt. InvestingPro’s analysis assigned the company an overall financial health score of "GOOD."
Northland characterized consensus estimates as conservative and laid out an upside scenario under which Camtek could post $4.25 per share on $650 million of revenue in calendar year 2027. Using that out-year figure, the broker said the stock would be trading at roughly 40 times the optimistic earnings projection.
The rating action follows recent corporate disclosures. Camtek’s fourth-quarter results were reported broadly in line with expectations, but the company issued first-quarter revenue guidance that fell short of investor hopes. At the same time management reiterated a projection of double-digit growth for 2026. The guidance miss prompted a pullback in the company’s shares during pre-market trading.
These developments come amid heightened scrutiny of Camtek’s forecasts from market participants and analysts, with the company’s forward-looking outlook remaining a focal point for investors. Northland’s move—raising a multi-year based price target while lowering the near-term recommendation—reflects a balance between favorable long-term model assumptions and nearer-term valuation and execution considerations.
Contextual note: The firm also highlighted that Camtek has delivered strong absolute returns recently, with a price gain of 84.71% over the past year and 83.6% over the last six months.