Truist starts coverage of Qnity Electronics and Entegris with Buy ratings

what happened

Truist Securities has begun coverage of Qnity Electronics with a Buy rating and a $170 price target. That target implies a 38.3% gain from the October 13 close of $122.90. According to the analysts, about 90% of the company's revenue is unit-driven and linked to recurring demand for consumables, which they say helps it benefit from rising materials use in advanced packaging and AI.

In a separate note, Truist also began coverage of Entegris with a Buy rating and a $190 price target. The target suggests 17.9% upside from the October 13 close of $161.16. The analysts point to a recovery in the semiconductor industry, driven by demand from advanced logic and AI-related applications, along with stronger free cash flow, lower net leverage and potential EBITDA margins above 30% by 2027.

Price target and rating data are provided by Benzinga. This material is informational and is not investment advice.

why it matters

For markets, both notes signal analyst optimism about semiconductor materials and electronics suppliers. Investors will likely compare the growth and margin forecasts with the companies' actual reported results. Ratings and price targets alone do not guarantee any movement in the shares.

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