In a report released today, Krish Sankar from TD Cowen maintained a Buy rating on Ultra Clean Holdings, with a price target of $100.00.
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Krish Sankar has given his Buy rating due to a combination of factors tied to an AI-driven wafer fab equipment upcycle and Ultra Clean’s ability to outgrow that market. He expects strong top-line expansion, projecting mid-20% revenue growth in 2026 and 2027, with operating leverage supporting EPS of about $3.15 on more than $3.1 billion of sales by 2027, which underpins his higher $100 price target.
He also highlights that tight capacity and new leading-edge fab builds should boost product demand, while rising utilization should benefit the higher-margin services segment. Despite elevated sector valuations and customer concentration, Ultra Clean has room to scale toward $3–4 billion in revenue with modest incremental investment, and recent quarterly results already show improving margins and profitability, reinforcing his constructive stance.