Investing.com - UBS upgraded Entegris Inc (NASDAQ:ENTG) from Neutral to Buy and raised its price target to $145.00 from $90.00. The new target represents a significant premium to the current stock price of $104.09, with shares already trading near their 52-week high of $110.46, according to InvestingPro data.
The upgrade reflects UBS's expectation of a broader MSI recovery and several technology inflections in 2026 that should materially benefit Entegris, including the ramp of N2 at TSMC, broader adoption of Molybdenum in the NAND metallization stack, and increased flow-through of leading edge AI wafer starts. This positive outlook comes despite InvestingPro analysis indicating the stock is currently trading above its Fair Value, with a P/E ratio of 54.44.
UBS projects revenue growth of 10% and 11% across 2026 and 2027, respectively, predicated on approximately 200 basis points of annual outperformance versus Entegris's underlying market, which comprises approximately 75% MSI and 25% semiconductor capital expenditure. The company's current annual revenue stands at $3.22 billion with a modest growth rate of 0.59% over the last twelve months.
The firm expects Entegris to exit 2027 with a gross margin of approximately 48.9%, compared to its projected 44.4% gross margin in 2025, attributing 150-200 basis points of this improvement to the ramp of Kaohsiung and Colorado facilities. For context, Entegris currently maintains a gross profit margin of 44.97%, as reported in InvestingPro's comprehensive financial health analysis, which rates the company's overall financial health as "GOOD" with a score of 2.57.
UBS believes Entegris will benefit from an additional 200 basis points of margin improvement driven by volume recovery and actions to consolidate its capacity footprint, which has grown by more than 150% since the acquisition of CMC Materials in mid-2022. The company's strong liquidity position is evident in its current ratio of 3.44, indicating that liquid assets comfortably exceed short-term obligations -- one of several key insights available in the detailed Pro Research Report covering this $15.76 billion market cap semiconductor materials provider.
In other recent news, Entegris Inc. reported its third-quarter 2025 earnings, with revenue remaining flat year-over-year at $807 million, slightly above the forecasted $804.17 million. The company's earnings per share met expectations at $0.72. Despite these results, concerns about gross margin and future guidance have been noted by investors. In addition to the earnings report, Entegris announced a quarterly dividend of $0.10 per share, payable on February 18, 2026, to shareholders of record as of January 28, 2026. Meanwhile, Goldman Sachs downgraded Entegris from Neutral to Sell, citing concerns over the company's margins and its fundamentals potentially lagging behind peers. The firm set a price target of $75.00, reflecting their cautious stance on Entegris amid an anticipated industry recovery. These developments highlight the mixed sentiment surrounding Entegris as it navigates current market conditions.