Bank of America Securities analyst Vivek Arya has reiterated their bullish stance on MKSI stock, giving a Buy rating yesterday.
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Vivek Arya has given his Buy rating due to a combination of factors including the ongoing recovery in the semiconductor market, which is expected to continue gaining momentum. MKS Instruments is well-positioned to benefit from this recovery, particularly in the NAND upgrades, where its portfolio is expected to see significant participation. Despite a slight impact from tariffs, the company is expected to mitigate these effects through its diversified supply chain and benefit from strong chemistry sales in the latter half of the year.
Additionally, MKS Instruments is expected to outperform in the Wafer Fabrication Equipment (WFE) sector due to its coverage of 85% of WFE steps and multiple growth drivers. The company’s AI server revenue is also experiencing secular growth, contributing to its positive outlook. While there are risks associated with a slower recovery in the Specialty Industrial sector and tariff uncertainties, the company’s improving free cash flow generation and efforts to reduce debt are seen as positive factors that could help close its valuation discount to peers.
Arya covers the Technology sector, focusing on stocks such as Nvidia, Intel, and Advanced Micro Devices. According to TipRanks, Arya has an average return of 11.0% and a 51.92% success rate on recommended stocks.
In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $105.00 price target.