Materion Corp. (MTRN) PT Raised to $82 at KeyBanc on Stronger than Expected Guidance

KeyBanc analyst Philip Gibbs raised the price target on Materion Corp. (NYSE: MTRN) to $82.00 (from $80.00) after the company reported a 1Q21 beat of $0.22 and newly issued annual EPS guidance of $3.00-$3.30. This annual range includes $0.20-$0.25 of cash-related start-up costs tied to MTRN's new clad strip capacity that was not anticipated making the increase that much more impressive.

The analyst reiterated an Overweight rating, stating "MTRN is guiding to $3.35-$3.40 at the midpoint (excluding clad start-up costs), well in excess of our previous estimate of $2.90, reflecting stronger sales across all end markets (excluding energy), enhanced by new product development, secular growth trends (semis and EV), and cyclical demand recovery. Notably, MTRN expects its EV sales to double this year (albeit likely off of a low level) and signaled its existing clad strip business is driving the growth."

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