In a report released today, Meta Marshall from Morgan Stanley maintained a Buy rating on Keysight Technologies, with a price target of $180.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Meta Marshall has given his Buy rating due to a combination of factors that suggest a positive outlook for Keysight Technologies. Despite the company’s reluctance to provide explicit details on the potential growth drivers, particularly in AI and Aerospace & Defense (A&D), there is a constructive background with strong spending in these areas. This indicates potential for growth, even though the company has not fully capitalized on these opportunities in terms of stock valuation.
Keysight’s current valuation is approximately 21 times the estimated 2026 earnings, which is consistent with its historical average but below the peak levels seen during the 5G cycle. The company’s focus on commercial communications and wireline offerings, driven by AI, has shown robust demand, although the lack of precise sizing makes it challenging to model future growth. Nevertheless, expectations for the upcoming quarter include a potential top-line beat and mid-single digit EPS beat, driven by strength in the AI and A&D segments. This potential for growth, coupled with room for valuation rerating, supports the Buy rating, even as the company approaches the end of its fiscal year.
In another report released on August 9, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $189.00 price target.