Entegris funding helps capitalize on geopolitical trend, says Deutsche Bank

Deutsche Bank keeps a Buy rating on Entegris with a $160 price target after the company announced the signing of a (preliminary memorandum of terms with the Department of Commerce for up to $75M in potential, direct funding under the CHIPS Act. The funding will help Entegris more profitably capitalize on the geopolitical trend requiring localized, reliable capacity, the analyst tells investors in a research note. The firm says the $75M funding, combined with the associated state and local benefits, almost entirely cover the company’s initial project costs of $280M and effectively yield a 30% cost reduction offset against the planned $600M total investment in the Colorado Springs facility.