Morgan Stanley analyst Shane Brett CFA has maintained their bullish stance on MKSI stock, giving a Buy rating on May 20.
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.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Shane Brett CFA has given his Buy rating due to a combination of factors that indicate a positive outlook for MKS Instruments. The CEO’s recent comments about NAND upgrades and normalized inventory levels suggest an increase in customer orders, which aligns with the firm’s forecast of MKS Instruments outperforming the broader wafer fabrication equipment market in the coming years. This anticipated growth is supported by a projected 9% year-over-year increase in 2025, significantly outpacing the expected 2% growth in the semiconductor capital equipment sector.
Furthermore, the company’s financial health appears robust, with a strong free cash flow generation that has enabled a $45 million buyback. This financial strength is expected to lead to a reduction in net leverage, projected to fall below 4x by June 2025 and under 3x by March 2027. The increased confidence in MKS Instruments’ performance and its ability to manage its balance sheet effectively has led to a raised target price of $100, with a bull case scenario of $146, reflecting a more optimistic view of the company’s future prospects.
In another report released on May 20, Wells Fargo also upgraded the stock to a Buy with a $0.00 price target.
MKSI’s price has also changed moderately for the past six months – from $114.920 to $84.890, which is a -26.13% drop .