Deutsche Bank moved Entegris Inc. (NASDAQ: ENTG) to the sidelines on Wednesday, adjusting its recommendation from Buy to Hold while simultaneously nudging up its price objective to $105.00 from $100.00. That revised target implies roughly a 7.7% downside from the stock's then-trading level of $113.70, and the firm noted Entegris trades at a high P/E ratio of 59.2 according to InvestingPro data.
The downgrade follows a substantial rally in Entegris shares this year, with the stock up about 35% year-to-date. Deutsche Bank said that price appreciation has pushed the share price above InvestingPro's Fair Value estimate, prompting a more cautious near-term stance despite the bank's continued long-run confidence in the company's prospects under its new management team.
At the center of Deutsche Bank's concern are near-term fundamentals in the semiconductor supply chain, particularly ongoing memory shortages. The bank flagged that constrained memory supply and the resulting disruption to consumer electronics production could weigh on demand for the company's products. Deutsche Bank highlighted the link between wafer starts and Entegris revenue, noting that roughly 75% of the company's sales are unit-driven and tied to semiconductor wafer starts.
Industry forecasts indicating mid-to-high single-digit declines in PC and smartphone shipments contributed to the bank's cautious outlook. Deutsche Bank suggested those projected drops in device volumes could create a material headwind for Entegris in the near term, given the company's exposure to unit-driven semiconductor manufacturing activity.
Other analyst actions and corporate developments this week underscore the mixed views on Entegris' near-term trajectory:
- UBS upgraded Entegris from Neutral to Buy and raised its price target to $145.00, citing anticipated technology inflections in 2026 that it believes could benefit the company.
- Seaport Global Securities downgraded Entegris from Buy to Neutral, pointing to the stock's recent run-up and potential challenges to organic growth in 2025.
- BMO Capital Markets increased its price target to $126.00 while maintaining an Outperform rating, attributing the move to improving sector fundamentals.
On the corporate front, Entegris announced a change in its finance leadership. Chief Financial Officer Linda LaGorga will step down effective February 28, 2026, and Mike Sauer will assume the role of Interim CFO. The company has engaged an executive search firm and is continuing its search for a permanent successor. Management has reaffirmed the company's financial guidance amid the transition.
Entegris also declared a quarterly cash dividend of $0.10 per share, payable on February 18, 2026.
Taken together, the analyst moves and the CFO transition reflect a dynamic moment for the company: some firms are raising targets and pointing to possible technology-driven tailwinds in 2026, while others are trimming ratings or highlighting the risks posed by recent share price gains and near-term demand weakness. Deutsche Bank's adjustment to Hold underscores a more guarded stance driven by immediate industry challenges, even as longer-term optimism remains among some market participants.