Bank of America Merrill Lynch Reports on Entegris (ENTG)

In a report released yesterday, Bank of America Merrill Lynch commented on Entegris (NASDAQ: ENTG). In the report, Bank of America Merrill Lynch was mixed in its assessment of the energy company.

Bank of America Merrill Lynch writes, “ENTG held their annual analyst day in New York yesterday. The mgmt spoke about targeting $1B in sales by 2013 off the 2010 base level of $668M driven by industry growth (+$133M), share gains (+$129M), and expansion into adjacent markets (+$50M) such as solar, LED, and lithium ion battery technologies. At $1B in sales, we believe the company could have gross margins just above 46% and operating margins over 23% leading to EPS of ~$1.30. We don't doubt the billion dollar headline number, especially since the management has done a strong job in executing towards their goal. But the reality is the company is not immune from headwinds related to the cycle.”

Bank of America Merrill Lynch currently has a Neutral rating on Entegris and a price objective of $10.00. Shares of ENTG closed the trading day at $9.06, up $0.28 from the opening bell.