Nova downgraded to Neutral from Buy at Citi

Citi downgraded Nova to Neutral from Buy with a price target of $224, down from $273. The firm updated its semiconductor equipment sector view and believes the equipment group is heading into a mid-cycle correction in the first half of 2025. While server artificial intelligence demand remains strong, consumer demand across PCs, smartphones, and auto “appears lackluster,” analyst tells investors in a research note. Citi says the downgrade of Nova aligns with its “Phase 3 sector view.” The firm continues to expect the company’s growth to outperform process control, but worries about the sustainability of the outperformance and the stock’s valuation.