Vivek Arya, an analyst from Bank of America Securities, reiterated the Buy rating on Nova (NVMI – Research Report). The associated price target was lowered to $235.00.
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Vivek Arya has given his Buy rating due to a combination of factors that highlight Nova’s strong position in the market. Nova is outperforming the broader wafer fab equipment (WFE) industry and its process control peers, driven by advancements in leading-edge technologies such as 2nm/3nm logic, advanced packaging, and high bandwidth memory (HBM). The company’s innovative product cycles, including Prism and Metrion, are contributing to its market share gains.
Despite facing near-term gross margin challenges due to tariffs and product mix, Nova’s management is optimistic about sales growth in the second half of the year, surpassing many of its competitors. The company’s advanced packaging segment is expected to continue its robust growth trajectory, with significant gains anticipated in 2025. Additionally, Nova’s long-term prospects are bolstered by secular trends in process control and advanced packaging, positioning it well for continued success into 2026. These factors, combined with a strong sales and earnings growth forecast, underpin Arya’s Buy rating.
In another report released yesterday, Evercore ISI also reiterated a Buy rating on the stock with a $240.00 price target.
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