Positive Outlook for Keysight Technologies: Buy Rating Supported by Strong Order Growth and Strategic Initiatives

Wells Fargo analyst Aaron Rakers maintained a Buy rating on Keysight Technologies (KEYS – Research Report) yesterday and set a price target of $190.00.

Aaron Rakers has given his Buy rating due to a combination of factors that indicate a positive outlook for Keysight Technologies. The company has shown a steady recovery with an 8% year-over-year increase in orders and a solid performance in the second fiscal quarter of 2025. This recovery is supported by a strong order intake and pipeline, particularly in the wireline segment driven by AI datacenter deployments, and signs of improvement in the wireless sector.
Additionally, Keysight Technologies has increased its guidance for fiscal year 2025, expecting revenue growth at the midpoint of its long-term target of 5%-7%. The company is actively working to mitigate its tariff exposure, which is estimated to be between $75 million and $100 million annually, with full mitigation expected by the end of the year. The potential for margin expansion and end-market recovery, along with strategic acquisitions, supports the belief that the company can achieve an EPS of over $9 by fiscal year 2027.

In another report released today, Barclays also maintained a Buy rating on the stock with a $200.00 price target.

Based on the recent corporate insider activity of 96 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KEYS in relation to earlier this year.