RBC Capital initiated coverage of Qnity Electronics (Q) with an Outperform rating and $120 price target following its spin from DuPont (DD). The stock began trading as “when issued” on October 27 and the spin finalizes on November 1, with regular-way trading beginning on November 3, the analyst noted. Qnity has outsized 35% exposure to advanced node chips along with 6%-7% topline and 7%-9% EBITDA compound annual growth, the analyst tells investors. The firm sees potential for shares to trade at a premium to peers, the analyst noted.
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