Trading for Eltek (ELTK, Financial) has been temporarily suspended following a volatility trading pause. This pause mechanism is typically triggered to ensure orderly trading and to give investors time to digest information and make informed decisions during significant market movements. Investors are advised to monitor the situation closely as trading resumes once stability returns to the stock's pricing dynamics.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 1 analysts, the average target price for Eltek Ltd (ELTK, Financial) is $18.00 with a high estimate of $18.00 and a low estimate of $18.00. The average target implies an upside of 78.04% from the current price of $10.11. More detailed estimate data can be found on the Eltek Ltd (ELTK) Forecast page.
Based on the consensus recommendation from 1 brokerage firms, Eltek Ltd's (ELTK, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Eltek Ltd (ELTK, Financial) in one year is $10.60, suggesting a upside of 4.85% from the current price of $10.11. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Eltek Ltd (ELTK) Summary page.
ELTK Key Business Developments
Release Date: May 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Eltek Ltd (ELTK, Financial) reported an increase in revenues for Q1 2025, totaling $12.8 million compared to $11.8 million in Q1 2024.
- Production efficiency has improved since the beginning of May, with operations stabilizing after initial challenges with new equipment.
- The company is on track to complete its accelerated investment plan by mid-2026, despite a two-month delay in equipment delivery.
- Eltek Ltd (ELTK) is actively working to diversify its supply chain in the Far East to expand commercial activities and leverage technological know-how.
- The company has initiated a company-wide IT transformation to optimize internal workflows and improve operational efficiency.
Negative Points
- Gross profit decreased to $2.2 million from $3.3 million in Q1 2024, primarily due to higher labor costs and lower yields.
- Operating profit for the quarter was $0.7 million, down from $1.7 million in the same period last year.
- Net income for Q1 2025 was $1 million or $0.15 per share, compared to $1.7 million or $0.27 per share in Q1 2024.
- The Israeli labor market remains challenging, making it difficult to attract qualified candidates for production and engineering roles.
- There is uncertainty regarding the tariff rates that may apply to products originating from Israel under the new US tariff policy, which could impact cost structures.
