CCMP - CMC Materials raised to Buy at Goldman on electronic materials improvement

CMC Materials (CCMP +2.4%) rallies to a four-month high after Goldman Sachs upgrades shares to Buy from Neutral with a $192 price target, despite the company's recent quarterly earnings miss. Goldman analyst Toshiya Hari points to improving prospects in the electronic materials segment, particularly in China, the company's ongoing pricing initiatives to offset inflationary pressures, and the initiation of its "Future Forward" cost-optimization program that should drive a positive re-rating of the stock. With lingering uncertainty surrounding the broader semiconductor cycle, Hari believes the market will look favorably on names with recurring revenue streams, providing further support for CMC Materials as more than 80% of TTM revenue was generated in semiconductor materials which are consumed as long as semiconductor fabs are running. Earlier today, CMC Materials said CFO Scott Beamer is departing the company.

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CMC Materials raised to Buy at Goldman on electronic materials improvement