Camtek (CAMT) faces tough 2026 comparisons following strong performance in the past two years, Morgan Stanley said in a Tuesday note.
The company's business in China surged about 85% in 2025, resulting in a harder comparison without a significant new business driver, as China is expected to grow 9% year over year in 2026, Morgan Stanley analysts said.
Camtek's growth in the Advanced Packaging segment, at 39%, trails that of three competitors, which have seen growth of at least 50%, while revenue outside Advanced Packaging declined 8% year over year, dragging on its overall revenue performance, according to the note.
The analysts project that the company's growth will accelerate into 2027, with product revenue growth ramping to 33% from 19% in 2026.
Morgan Stanley adjusted its 2027 forecast for Camtek to estimated EPS of $5.01 on revenue of $788.3 million from previous estimates of EPS of $4.82 on revenue of $731 million.
Morgan Stanley kept the company's stock rating at equal-weight and lowered the price target to $165 from $167.
Price: $160.27, Change: $+2.17, Percent Change: +1.37%