Qnity Electronics' (Q) Q2 electronic materials volumes may continue to grow, driven by growing exposure to advanced semiconductor nodes, improving semiconductor fabrication utilization rates and continued customer capacity additions, RBC Capital Markets said in a note Tuesday.
The brokerage reiterated its "outperform" rating but lowered its price target to $189 from $200, citing weaker sentiment toward semiconductor and electronic materials stocks.
RBC said it expects another mid-single-digit EBITDA beat, driven by continued demand for artificial intelligence and high-performance computing.
The brokerage raised its EBITDA forecasts to $415 million for the second quarter, $1.63 billion for fiscal 2026 and $1.82 billion for fiscal 2027, from $410 million, $1.60 billion and $1.75 billion, respectively.
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