Wall Street Concludes Week Positively as Israeli-Linked Stocks Rally
Wall Street ended the week positively as Nasdaq, S&P 500, and Dow Jones gained. Key Israeli-linked stocks highlighted include Camtek, QTREX, and Nayax following major developments.
Wall Street closed the trading week on a positive note. During the final two trading sessions of the week, the Nasdaq index rose by 1.2%, the S&P 500 index gained 0.9%, and the Dow Jones index advanced by 0.5%. Here are the prominent Israeli-linked stocks that stood out in trading:
Camtek Jumps 7.4% on Friday, Analysts Expect Around 12% Premium
Camtek's stock rose by 7.4% on Friday after slipping 0.9% on Thursday. Cumulatively over Thursday and Friday, the stock advanced by 6.4% and will return to trading on the Tel Aviv Stock Exchange with a positive arbitrage gap of approximately 3.9% (following the closure of the TASE on Friday due to a holiday eve). Camtek, managed by Rafi Amit, provides inspection systems for semiconductor manufacturing processes, and its market cap stands at $7.7 billion. Over the past year, Camtek's stock has climbed by 45.8%, though since reaching an all-time high last May, the stock has pulled back by 20.4%.
Last week's gains in the stock did not stem from any specific corporate announcement. The stock benefited from sector-wide tailwinds as the Philadelphia Semiconductor Index rose by about 4% between Thursday and Friday. On the investor website The Motley Fool, a positive article on Camtek was published last week, highlighting among other things that the company maintains strong order visibility.
According to data from The Wall Street Journal, 12 analysts cover Camtek's stock, of which 7 are bullish and the rest are neutral. The average price target for the stock reflects a 11.6% premium over its current price on Nasdaq.
Quantum Computing Component Maker QTREX Surges 40%: "A Entirely Different Category"
About half a year ago, the biomed company Inspira announced a business pivot and rebranding, transforming into QTREX Quantum, which engages in quantum computing infrastructure. According to the company's website, QTREX manufactures extremely small components using Additive Manufacturing technology that replace cumbersome systems in the field. The company's website noted that "advanced quantum processors advance rapidly, but they cannot function without systems for connection, control, and cooling," and it is this layer of cryogenic connections (capable of operating at extremely low temperatures) and thermal management that the company builds. The CEO of QTREX is Dagi Ben-Noon, who managed the company through its previous activities and former name.
On Friday, QTREX's stock skyrocketed by 40.2% on massive trading volume, 26 times its daily average. This followed a 15.1% increase on Thursday, also on above-average volume. Following the stock's surge, the company's market cap on Nasdaq reached $61 million (the company had previously traded at a higher valuation following the completion of its transition last May).
QTREX reported on Thursday that the connections it manufactures were independently tested by a leading quantum computing company. Based on the positive results, QTREX and the quantum company are formulating a binding agreement, at which point the company's name will also be published. The announcement further stated that QTREX expects to announce agreements with additional companies during the current quarter. According to CEO Ben-Noon, the results do not merely provide an improvement but represent an entirely different category.
Nayax Completes Major Acquisition, Funded via Debt from Poalim Tech and First International
Fintech company Nayax completed the acquisition of IPS from the US over the weekend (the largest acquisition in the company's history), bringing it into the smart parking market. Nayax announced the acquisition last month, noting that to finance the transaction it would raise $150 million in debt. The company secured the debt from Poalim Tech, Bank Hapoalim's high-tech banking arm, and from First International Bank. Details regarding the financing terms were not disclosed.
Nayax, managed by Yair Nahmad, provides cashless payment solutions. The company estimates that IPS will contribute $20-22 million to its revenue and over $5 million to its EBITDA (earnings before interest, taxes, depreciation, and amortization) in the fourth quarter of the year.
Meanwhile, the CEO continued purchasing shares; after reporting acquisitions totaling approximately $4.6 million last week, he acquired an additional $2.1 million in shares over recent days at prices around $45 per share. Nayax's stock rose by 2.7% during the final trading sessions of the week and strengthened by 8.8% for the full week, though it has not yet returned to the price levels seen at the beginning of August before it lowered its annual free cash flow forecast due to investments in growth.
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