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On Friday, KeyBanc Capital Markets adjusted its outlook on Entegris Inc (NASDAQ:ENTG) by reducing the price target from $150.00 to $141.00, while sustaining an Overweight rating on the stock. Currently trading at $109.53, InvestingPro data shows the stock trading at elevated multiples, with a P/E ratio of 53.8x. The decision follows KeyBanc’s analysis of the company’s growth prospects and market position.
Entegris, recognized for its premier product portfolio, is expected to experience growth acceleration through 2025 driven by node transitions in the semiconductor industry. The company’s current EBITDA stands at $912.16 million, according to InvestingPro data, with the stock showing significant momentum, gaining 7.87% in the past week. Despite the market’s growth at a low single-digit rate, Entegris is anticipated to outperform with an initial EBITDA guidance for 2025 of approximately $1 billion, marking a 9% year-over-year increase.
The company’s management is confident in outperforming the market growth of about 1-3% by 4-5% in 2025, or 5-6% excluding the impact of China trade restrictions. This performance is aligned with Entegris’s long-term target of 3-6% growth. However, due to limited visibility in memory and mainstream logic markets, the initial growth framework is considered conservative by KeyBanc, with potential upside as the year progresses.
The second half of the year is particularly significant for Entegris as node transitions are expected to lead to faster growth. Additionally, the ongoing shift from tungsten to molybdenum in 3D NAND devices with more than 300 layers is set to commence within the year. Entegris has already secured two product of record (POR) wins in molybdenum, with two more decisions expected by the end of the first half of 2025.
Advanced Packaging (NYSE:PKG) is highlighted as another growth area for Entegris, with positive updates anticipated throughout the year. KeyBanc’s analyst views Entegris as one of the preferred ways to engage with the impending semiconductor recovery, despite trimming the price target due to a modestly adjusted growth trajectory for the years 2025-2026. With a market capitalization of $16.54 billion and analyst consensus remaining bullish, investors seeking deeper insights can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Entegris Inc. has been the focus of several analysts, following its recent earnings results and updated guidance for 2025. The company reported robust Q4 2024 results, with adjusted earnings per share (EPS) of $0.84 and revenue of $849.84 million, surpassing analyst estimates. However, Entegris’ Q1 2025 guidance fell short of expectations, with projected EPS between $0.64 and $0.71 and revenue in the range of $775 million to $805 million.
BMO Capital Markets adjusted its price target for Entegris from $135.00 to $131.00, maintaining an Outperform rating. The firm’s analyst, Bhavesh Lodaya, noted a strong finish to 2024 and expressed optimism about the company’s growth prospects in the second half of 2025. Meanwhile, Citi analyst Atif Malik raised the price target for Entegris from $123.00 to $125.00, keeping a Buy rating. Malik’s analysis suggests sustained investor confidence in the company’s strategic positioning within the semiconductor industry.
These are part of the recent developments surrounding Entegris, a critical player in the materials and solutions for the semiconductor and other high-tech industries. Despite near-term challenges, both BMO Capital and Citi analysts see Entegris as a company poised for multi-year growth.
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