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Nova stock target price12/19/2023 ![]() Customers are primarily based in Israel, Taiwan, the United States, China, and Korea, but it sells worldwide. Nova is a tech software company designing and selling process control systems used in the manufacture of semiconductors. Nova Ltd., formerly Nova Measuring Instruments Ltd., operates in a complex environment that Amit Peretz best explains in a recent Seeking Alpha article. Shares, in our opinion, have momentum, and if the company again beats EPS estimates and reports profits the share price can potentially scale up another 10% around to its pre-war 52-week high of $131.51. Yet despite this perniciousness, we believe Nova stock is a potential Buy opportunity. These low expectations reflect the Byung-Chul Han philosophy characterizing capitalism as a technologically driven state of negativity and depression which seems to dominate economic thinking today. For instance, FY '23 EPS can top $4.02 and +$5.15 in '24 Fiscal Quarter End The consensus EPS forecasts were beaten before, so we think management will be on the spot again. $0.96 to $1.11 in diluted GAAP EPS, (and) $1.16 to $1.31 in diluted non-GAAP EPS. Based on current estimates, management expects (Q4 '23) $123 million to $132 million in revenue. 2023 Fourth Quarter Financial Outlook Management provided an outlook for the fourth quarter, the period ending December 31, 2023. ![]() "As we already look ahead toward 2024, we expect Nova to resume its growth and outperformance trajectory towards our $1B strategic plan. Management outlook to the horizon is beamish: industry report confirmed semiconductor sales are slumping. Israel's fiscal deficit is probably going to hit 5.3% of GDP in FY ', up from the Bank of Israel's previous forecast before the war of 2.3%.The company's annual forecasts represent a sharp contraction of 5% in GDP in the fourth quarter of 2023." ![]() The S&P ratings agency recently downgraded Israel's credit outlook "with the scenario of the war escalating… S&P sees GDP growth of 1.5% in Israel in 2023 and 0.5% in 2024.Bad news from the Middle East deflated investor confidence in October in Israel-based stocks publicly traded on an American stock exchange. ![]() Nova's Q3 '23 revenue was reported -11% Y/Y. Its Q3 '23 revenue and earnings report released last week was mixed. ( NASDAQ: NVMI) which sells into the semiconductor industry. Analysts had forecast limp third-quarter revenue and earnings for Israel-based Nova Ltd. ![]()
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