Goldman Sachs Turns Bullish On CMC Materials, Bumps Up Price Target By 29%

  • Goldman Sachs analyst Toshiya Hari upgraded CMC Materials Inc CCMP to Buy from Neutral with a price target of $192, up from $149, implying a 26% upside.
  • Improving prospects in the electronic materials segment, particularly in China, the company's ongoing pricing initiatives to offset inflationary pressures, and its "Future Forward" cost-optimization program should drive a positive re-rating of the stock Hari states. 
  • The analyst adds that CMC trades at a significant discount to peers. 
  • Further, with uncertainty surrounding the broader semiconductor cycle, the market will look favorably on names with recurring revenue streams, providing further support for CMC as over 80% of its revenue is generated in semiconductor materials consumed as long as semiconductor fabs are running.
  • CMC Materials stated that Scott D. Beamer has resigned as CFO on November 15. 
  • The company named Jeanette A. Press, Principal Accounting Officer and Controller, as its Interim CFO, effective immediately, while the company initiated a search for a permanent successor. 
  • Price Action: CCMP shares traded higher by 4.84% at $151.96 on the last check Monday.
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