Analyst James Ricchiuti of Needham reiterated a Buy rating on MKS Instruments (MKSI – Research Report), reducing the price target to $140.00.
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James Ricchiuti has given his Buy rating due to a combination of factors that highlight MKS Instruments’ strong performance and growth prospects. The company reported better-than-expected results for the first quarter, driven by significant growth in its Semiconductor and Electronics & Packaging segments. Revenues increased by 8% year-over-year, surpassing the market’s expectation of a 5% rise, and the non-GAAP earnings per share surged by 45%, exceeding the consensus estimate of 23%.
Despite some challenges, such as a decline in the Specialty Industrial segment and a slightly conservative outlook for the second quarter, Ricchiuti remains optimistic about the company’s future. He anticipates that the tariff-related headwinds will diminish in the latter half of 2025, which should further support the company’s performance. Consequently, he has adjusted his estimates for 2025 and 2026 upwards, reinforcing his belief that MKS shares are currently undervalued and present an attractive investment opportunity.
In another report released today, Mizuho Securities also maintained a Buy rating on the stock with a $105.00 price target.