Stifel has raised its price objective on Camtek Ltd. shares to $185 from $120 and reiterated a Buy rating on the semiconductor equipment maker. The revised target implies further upside from the company’s most recent share price of $157.54, even as market data shows Camtek is trading at a rich earnings multiple - a price-to-earnings ratio of 153.11.
The brokerage pointed to Camtek’s fourth-quarter results, which came in line with expectations, and to full-year 2025 revenue that rose 16% versus the prior year. Over a longer horizon, the company’s five-year compound annual revenue growth rate stands at 26%, consistent with the reported multi-year performance figures.
Camtek’s guidance for the first quarter arrived slightly above Stifel’s own forecast and consensus estimates. Stifel characterized the first quarter as likely representing a near-term trough for the business, and highlighted an improving outlook for AI packaging as the driver of renewed growth beginning in the second quarter and extending into the second half of 2026.
Company management has guided to double-digit revenue growth for 2026 on a year-over-year basis, and did not eliminate scenarios in which growth reaches the mid-to-upper teens. Stifel updated its modeling for 2026 and 2027 to reflect what it describes as a two-year mid-teens revenue compound annual growth rate.
The firm also emphasized that proven, high-growth small-cap semiconductor equipment original equipment manufacturers are relatively rare. That scarcity - combined with signs of a strengthening backlog and revenue momentum tied to AI packaging - underpins Stifel’s decision to raise the price target.
Market pricing has reflected the company’s recent performance: Camtek has delivered strong returns over the last year, with market data indicating a price gain of 85.34% during that period. The shares are trading close to a 52-week high of $170.46.
Additional analyst activity and company metrics
In related analyst moves, Camtek reported fourth-quarter 2025 revenue of $128.1 million, a result that came in above Needham’s expectations. Roughly half of that revenue was attributed to AI-related products and services.
Despite the top-line beat, Northland changed its rating on Camtek to Market Perform from Outperform, while raising its price target to $150 from $128. Needham maintained a Buy rating and raised its price target to $175, citing a constructive view on AI-driven demand.
Camtek’s non-GAAP gross margin for the period was reported at 51.1%, slightly under Needham’s estimate. The company’s guidance broadly tracked consensus, although the first-quarter revenue outlook was described as below some investors’ expectations.
Management expects to gain market share over the coming year, even as the company presently trails some peers on relative performance. Despite the mixed reception to elements of the guidance and margin figures, the company is projecting double-digit revenue growth for 2026.
Note on data cited in this report: market and valuation figures cited reflect available market data and company disclosures referenced in the earnings and guidance commentary.