April 16, 2019 INITIATING COVERAGE Innovating the Future of Metrology; Initiating Coverage with a Buy Nova Measuring Instruments Ltd. (NVMI) BUY Stock Rating $33.00 We are initiating coverage of Nova Measuring Instruments (NVMI) with a Buy rating Price Target and Price Target of $33, based on 18x our CY20 NG EPS (ex SBC) estimate. Nova is a pure-play wafer fabrication equipment (WFE) vendor participating exclusively in the Process Control optical and materials metrology market. Nova is one of three participants in the thin- film metrology market, which is one of the fastest growing process control segments N. Quinn Bolton, CFA with a ~20% 2014-2018 CAGR. We are positive on Nova’s growth potential in the long run reflecting the company’s leadership position in integrated OCD, growth prospects (212) 705-0322
[email protected] for the company’s unique and innovative XPS technology for materials metrology and Charles Shi, Ph.D. the anticipated market introduction of two new technologies with at least one expected toA metrologybegin generating pure play revenue in 2019. (415) 262-4868
[email protected] . Nova is a pure-play WFE vendor solely focused on the optical Michelle Waller thin film metrology segment of process control, one of the fastest growing process control segments with a ~20% 2014-2018 CAGR. Similar to the deposition, etch and (212) 705-0295 CMP equipment markets, optical thin film metrology is benefiting from the adoption of
[email protected] multipleThe leader patterning in integrated in advanced OCD logic and the increasing layer counts in 3D NAND. Since its founding in 1993, Nova has been an innovator of integrated metrology solutions and has established the market leadership position, including in CMP.