“ENTG is currently located “As the only pure-play semiconductor company within the chemicals and materials ecosystem,” said Deutsche Bank analyst Melissa Weathers, in a note, “we believe ENTG has outsized exposure to the fastest-growing trends in semiconductor manufacturing technology over the next decade (GAA, higher 3D NAND stacks, broader adoption of EUV in DRAM, etc.).”
Deutsche Bank set a $160 price target for the Massachusetts-based high-tech provider.
“Our target price is based on a P/E multiple of ~36x our CY25E EPS, a well-deserved premium to the company's five-year median of ~26x, reflecting the company's superior growth opportunities post-divestitures,” Weathers added.
Entegris is also a CHIPS and Science Act grantee. Late last month, it signed a preliminary nonbinding memorandum of terms with the U.S. Department of Commerce to receive up to $75 million in direct funding to build a facility in Colorado Springs, Colorado.
Some of Entegris' major clients include Taiwan Semiconductor Manufacturing Company (TSM), Samsung (OTCPK:SSNLF), Intel (INTC), and Micron technology (MU).
Entegris has a Buy rating from both Seeking Alpha and Wall Street analysts. However, it has a Hold rating from Seeking Alpha's Quant system, which regularly outperforms the market.
