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.