Seaport starts Element Solutions with a Buy on electronics segment strength

As previously reported, Seaport Research initiated coverage of Element Solutions with a Buy rating and $33 price target as the firm expands coverage of the electronic materials industry. Element’s Electronics segment is a leading provider of materials used in printed circuit boards, metallization, interconnect, and packaging applications and the firm views these materials, particularly those used in advanced packaging, as providing critical performance enhancements as chips themselves reach the physical limits on feature size, the analyst tells investors. The firm expects Electronics to account for a growing portion of Element’s earnings over time and says that even if the electronics and industrial recovery plays out more slowly than anticipated, the company should be well-positioned to outgrow the market and drive strong bottom-line growth.