Deutsche Bank raised its opinion on Entegris (ENTG) to buy from hold Friday, citing cost savings from the Mykrolis merger.
Analyst Hari Chandra believes cost savings from the Mykrolis merger will likely exceed the $15 million target. He noted that indications from management lead him to believe that the $6 million incremental cost savings are likely on top of the $15 million target by the company.
He said he had not modeled for any revenue synergies earlier, but now estimates $12 million upside to his $730 million fiscal year 2006 (ending August) estimate from product/customer leverage from Mykrolis.
The analyst now sees $742.1 million fiscal year 2006 revenue and raised his target to $13, 20 times his 65 cents calendar year 2006 earnings per share estimates, vs. the 15 times to 21 times range he assigns to the broader semicap/materials group.