Core Viewpoint - Deutsche Bank initiated coverage on Qnity Electronics with a Buy rating and a $92 price target, indicating a positive outlook for the company in the semiconductor sector [1]. Group 1: Company Overview - Qnity Electronics is positioned to benefit from increasing materials spending in the semiconductor industry, with approximately 57% of its FY24 sales derived from this sector [2]. - The company is expected to see growth in materials content per wafer at a mid-single-digit CAGR through 2029, driven by rising node complexity across various semiconductor technologies [2]. Group 2: Financial Projections - Deutsche Bank forecasts that Qnity Electronics will achieve revenue growth exceeding the broader industry by about 200 basis points, with even faster EBITDA expansion anticipated [3]. - The valuation of Qnity Electronics appears attractive following a post-spin pullback, with a forward EV/EBITDA multiple that is favorable compared to peers [3]. - Applying a 14x 2027E EV/EBITDA multiple results in a $92 target price, suggesting approximately 22% upside from current levels [3].
Deutsche Bank Starts Coverage of Qnity Electronics With Buy Rating and $92 Target
Financial Modeling Prepยท2025-11-24 20:48