“ENTG currently stands as the only semiconductor pure play company within the chemicals and materials ecosystem,” said Deutsche Bank analyst Melissa Weathers, in a note. “We believe ENTG to have an outsized exposure to the fastest-growing trends in semiconductor manufacturing technology in the next decade (GAA, taller 3D NAND stacks, broader EUV adoption in DRAM, etc.).”
Deutsche Bank set a price target of $160 on the Massachusetts-based, high-tech supplier.
“Our price target is based on a P/E multiple of ~36x our CY25E EPS, a 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 benefactor of the CHIPS and Science Act. Late last month, it signed a non-binding preliminary memorandum of terms with the U.S. Department of Commerce to receive up to $75M in direct funding to build a facility in Colorado Springs, Colo.
Some of Entegris’ biggest customers 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 beats the market.