10:50 AM EDT, 07/18/2025 (MT Newswires) -- Materion ( MTRN ) is set to grow further due to easing China tariffs, improving demand in semiconductors, and momentum in aerospace and defense, KeyBanc Capital Markets said in a note Thursday.

KeyBanc analysts increased their 2025 and 2026 earnings per share forecasts due to easing US-China tariffs, a recovering semiconductor cycle, ongoing strength in aerospace and defense, and management's focus on boosting margins across the cycle. They added that they believe investors will be drawn to Materion's ( MTRN ) strategic beryllium operations, especially as the US government emphasizes domestic critical mineral production.

The analysts increased their 2025 EPS estimate to $5.04 from $4.80, with Q2 EPS expected at $1.16, which includes a $0.10 to $0.15 per share impact from China tariffs. With recent tariff relief, reciprocal duties down from over 100% to between 30% and 35%, the analysts expect tariff-related EPS headwinds in H2 to drop to about $0.20 from $0.45.

Almost $100 million in annual US shipments to China, half of which support semiconductor production, should revive as customer orders resume, KeyBanc said. Additionally, a recent Asian acquisition to produce tantalum targets should further Materion's ( MTRN ) regional positioning and margins, according to the note.

KeyBanc upgraded the stock to overweight from sector weight and set a $112 price target.

Shares of Materion ( MTRN ) were up 5.7% in recent trading.

Price: 93.71, Change: +5.08, Percent Change: +5.73