UPDATE: Wolfe Research Starts Cabot Microelectronics (CCMP) at Underperform
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Wolfe Research analyst Josh Silverstein initiates coverage on Cabot Microelectronics (NASDAQ: CCMP) with a Underperform rating, PT $152.00.
The analyst comments "A global leader in CMP slurries, CMP pads, and Electronic Chemicals, CCMP has scale and a product portfolio to provide visible long-term growth from the growing semiconductor market. With wafer starts estimated at 4-6% over the 2020-25 period with increasing complexity and CCMP’s revenue historically tied to this metric, the Electronic Materials unit could grow 100-200bps above this range. However, despite this positive long-term trend and 20% decline in the stock over the past six weeks providing a more attractive entry point, we initiate at Underperform as we see the stock fully valued based on its historical multiple, there’s downside risk to 2022 Consensus EBITDA, and revenue growth outside of the slurries has slowed, holding back corporate growth."
Shares of Cabot Microelectronics closed at $150.01 yesterday.
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