UPDATE: Citigroup Raises PT on ATMI Following Weaker June Quarter Results

In a report published Monday, Citigroup analyst Terence Whalen reiterated a Neutral rating on ATMI ATMI, and raised the price target from $22.00 to $26.00.

In the report, Citigroup noted, “ATMI stock is down 7% since reporting weaker than expected Jun-Q results on 7/24 driven by lower logic wafer starts. We think Sept-Q +3-5% microelectronics revenue growth expectations still appear high relative to our 1% qq wafer starts growth assumption. Our work shows ATMI's microlectronics sales show a strong correlation of 0.7 with industry's overall wafer starts growth (Figure 1). We strongly believe ATMI can successfully translate semi success to LifeSciences by offering unique single-use technology (SUT) equipment and services. However, we think tepid microelectronics growth in the next 2-3 quarters will keep the stock in the $24-26 range or 13-14x P/E, in-line with the five year historical average.”

ATMI closed on Friday at $24.59.