, an analyst from Citi, has initiated a new Buy rating on Keysight Technologies (KEYS).
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Citigroup’s rating is based on several positive developments for Keysight Technologies. The company has successfully navigated through a period of cyclical decline and is now benefiting from stabilizing trends in the wireless sector, alongside improvements in aerospace and defense. Additionally, there is a notable recovery in the wireline and semiconductor segments, primarily driven by advancements in artificial intelligence. These factors contribute to an optimistic outlook for the company’s future sales growth, which is expected to surpass long-term guidance.
Furthermore, the completion of strategic acquisitions, including Spirent, Synopsys Optical Solutions Group, and Ansys PowerArtist, enhances Keysight’s capabilities and expands its addressable market. These acquisitions are anticipated to increase the company’s software and services mix, providing a solid foundation for future growth. The anticipated double-digit growth in the wireline business and significant growth in the semiconductor sector, driven by AI, are expected to be key contributors to the company’s outperformance in the upcoming fiscal year. Consequently, Citigroup values Keysight at a premium, reflecting confidence in its sustainable growth trajectory.
In another report released on November 12, J.P. Morgan also maintained a Buy rating on the stock with a $200.00 price target.