Research Alert: CFRA Maintains Hold Opinion On Cabot Microelectronics
12:50 AM EDT, 05/11/2021 (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:
Our 12-month target of $172 (down $3), 20.9x our FY 22 (Sep.) EPS estimate is below peers, supported by restrained growth prospects -- shares remain near fair value currently, in our view. We cut our FY 21 EPS estimate by $0.11 to $7.71 and FY 22's EPS by $0.30 to $8.23. CCMP prints Mar-Q adj-EPS of $1.71 vs. $1.75, below consensus by $0.23, as higher professional services spending drove the miss. Notably, a delayed recovery in Pipeline and Industrial Materials (PIM) drove a pre-tax goodwill impairment charge of $208M, which is excluded from adjusted figures. CCMP produced revenues of $291M, up 2% Y/Y, but fell short of consensus, led by lower demand in PIM. CCMP raised its adj-EBITDA target for FY 21 to $370M-$390M (from $367M-$387M) to reflect broad-based strength in Electronic Materials and a H2 recovery in Performance Materials. Longer-term prospects should brighten, as capacity expansion at large customers boosts demand for chemical mechanical planarization (CMP) slurry and pad consumable products.