Deutsche Bank initiated coverage on Qnity Electronics (NYSE: Q) with a Buy rating and a $92 price target.

The brokerage said Qnity Electronics offered a compelling entry point for investors seeking exposure to rapidly expanding materials spending across attractive semiconductor verticals, including leading-edge process nodes and emerging middle-/back-end technologies such as advanced packaging. Approximately 57% of the company's FY24 sales came from semiconductors, positioning it to benefit from rising materials content per wafer, which Qnity expects to grow at a mid-single-digit CAGR through 2029 as node complexity increases across foundry, logic, DRAM and NAND.

Deutsche Bank predicted revenue growth exceeding the broader industry by roughly 200 basis points, with even faster EBITDA expansion. It added that the valuation appeared attractive following a post-spin pullback, noting that the company's forward EV/EBITDA multiple screens favorably against peers. Applying a 14x 2027E EV/EBITDA multiple yields the $92 target, representing about 22% upside from current levels.