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Research Alert: CFRA Lowers Opinion On Cabot Microelectronics To Hold From Buy

· 02/05/2021 09:40

02:35 PM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target by $5 to $175, 22.4x our FY 21 (Sep.) EPS estimate, in line with peers. We raise our FY 21 EPS estimate by $0.10 to $7.82 and keep FY 22's EPS at $8.53. CCMP prints Dec-Q adj-EPS of $1.92, flat with the year prior, beating consensus by $0.19. CCMP delivered revenues of $288M, up 5% sequentially, surpassing consensus by $10M, as demand in advanced nodes for logic and higher utilization in memory (both DRAM and NAND) drove the beat. CCMP raised its FY 21 adj-EBITDA outlook to $367M-$387M (from $358M-$385M), aided by signs of a recovery of drag reducing agents (DRAs), as pipeline throughput continues to firm and capacity constraints remain, resulting in higher oil demand. Demand prospects at large customers (e.g., Intel) remain positive, regardless of whether outsourcing is a future option or not, as CCMP's customer base includes both TSMC and Samsung. That said, with the share price approaching our target and future catalysts partly baked into estimates, we downgrade shares to Hold.