2024-06-17 00:46:27 ET
Summary
- Strength in advanced packaging and physical storage markets are driving a recovery in Electronics, and management recently boosted full-year EBITDA guidance on the strength of these segments.
- Electronics demand should continue to recover as the semiconductor and consumer electronics markets emerge from a downturn, but there are short-term headwinds in autos, construction, and general industrial markets.
- ESI has attractive long-term leverage to increasing chip and circuit board design complexity through high-value specialty materials, not to mention leverage to auto and industrial electrification and auto lightweighting.
- ESI shares offer some value today, and the company has strong multiyear tailwinds that can drive beat-and-raise quarters and multiple expansion.
Deciding how to balance short-term and long-term drivers is seldom easy, but in the case of Element Solutions ( ESI ) it’s a little more challenging than usual....
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Leverage To More Complex Chip And Circuit Designs Is A Key Driver For Element Solutions