KMG Chemicals (NASDAQ:KMGB) Should Benefit From Global Semiconductor Demand

KMG Chemicals (NASDAQ:KMGB) should strongly benefit from the global demand for semiconductors, according to Canaccord, citing they're a major supplier to Intel (Nasdaq:INTC) and other semiconductor manufacturers.

Canaccord said, "We conclude Intel’s (INTC) Q4 results and outlook confirm that overall global demand for semiconductors remains solid. This should benefit KMG, which is not only a major chemical supplier to Intel but also other major semi manufacturers. While we maintain our estimates at this time, Intel’s positive outlook increases our confidence in our F2011 estimates.

Canaccord Genuity reiterates a "Buy" rating on KMG Chemicals, which closed Friday at $17.10, gaining $0.53, or 3.20 percent. Canaccord has a price target on them of $22.