According to the analysts at Deutsche Bank, the underperformance of Entegris, Inc. (NASDAQ:ENTG) shares vs. peers since the acquisition announcement of CMC Materials on Dec 15, was driven by investors’ concern regarding the increased leverage from the proposed acquisition in a rising rate environment, as well as some uncertainties around the non-semis business of CMC Materials.

The analysts continue to believe the deal could be accretive to the company’s EPS by around 15% in the first year following closing, seeing the potential for additional accretion from revenue synergies.

As the analysts believe the pressure since the deal announcement is overdone, it upgraded the company to buy from hold, maintaining its $160 price, which represents a potential 25% upside.