Entegris initiated with a Perform at Oppenheimer

Oppenheimer analyst Edward Yang initiated coverage of Entegris (ENTG) with a Perform rating and $95 price target The firm says Entegris is potentially a compelling investment, strategically built through multiple successful acquisitions to become the “one-stop-shop” for semiconductor consumables and process solutions. However, its full promise is still unfolding, requiring patience, constrained by industry cycles and an extended balance sheet from the $6.5B purchase of CMC in June 2022, Oppenheimer argues. It’s paused buybacks and M&A, focusing on reducing net debt/EBITDA from 4-times to long-term 2-times. A CEO transition, muted revenue, and shares that already largely discount a 2026 recovery make the firm wait for new growth catalysts. Finally, the planned spin-out of Qnity, another semiconductor/chemical hybrid, could create valuation ripples for Entegris, says the firm.