Seaport Global Securities downgraded Entegris Inc (NASDAQ:ENTG) from a Buy rating to Neutral on Friday, reflecting concerns that the share price has already largely captured anticipated earnings growth expected in 2026. According to firm data, Entgrigs shares have surged more than 40% year-to-date and currently trade within 1% of their 52-week peak at $122.44, indicating a significant upward momentum in recent months.
The brokerage noted that Entegris has surpassed its prior price target of $115, presently trading at a valuation of roughly 22 times the company's slightly lowered forecast for 2026 EBITDA. This is further underscored by the company’s enterprise value-to-EBITDA ratio standing at approximately 23.37x and a price-to-earnings ratio near 62, metrics that suggest the stock may be trading at a premium compared to InvestingPro’s fair value benchmarks.
Challenges impacting organic expansion in 2025 include delays in node transitions, a key driver of above-market growth, which typically increase Entegris's semiconductor content per chip. These transitions are crucial for the firm as they fuel demand growth tied to technological advancements.
Looking beyond 2025, Seaport Global expects the underlying market to experience mid-single-digit growth, supported by robust activity in advanced logic applications, upcoming node transitions, recovery in mainstream logic demand, expansion in memory driven by high-bandwidth memory and artificial intelligence applications, and stabilization in semiconductor fabrication capital expenditures.
With a price/earnings-to-growth (PEG) ratio of 2.34, Entegris appears expensive relative to its near-term growth prospects according to the firm’s analysis.
Despite the cautious pricing outlook, Seaport Global has modestly raised its fourth-quarter projections, anticipating that Entegris will report sales and earnings results above the midpoint of its guidance range. This optimism is buoyed by strong fourth-quarter performance at Taiwan Semiconductor Manufacturing Company (TSMC), fueled by ongoing demand for AI and other advanced technologies, alongside tighter memory chip supplies which could benefit production rates.
The research house also noted the recent announcement by Entegris regarding a CFO transition, with Linda LaGorga stepping down in February 2026 and Mike Sauer appointed as Interim CFO. While this leadership change introduces some near-term uncertainty, Seaport Global expects the company to maintain a cautious outlook while progressing toward considerably higher earnings potential over the longer term.
In a series of recent company updates, Entegris declared a quarterly dividend of $0.10 per share payable in February 2026, signaling its ongoing commitment to shareholder returns. Furthermore, financial guidance was reaffirmed post-CFO transition, indicating operational stability amidst the change.
Analyst opinions remain mixed: BMO Capital has raised its price target on Entegris to $126, citing improving fundamentals in the sector. UBS upgraded the stock from Neutral to Buy, expecting advancements in technology and recovery within the semiconductor industry. Conversely, Goldman Sachs downgraded the stock to Sell, expressing concerns about margins relative to competitors. These divergent outlooks reflect differing assessments of the company’s near-term challenges and long-term prospects.