MKS Instruments initiated with an Overweight at JPMorgan

JPMorgan initiated coverage of MKS Instruments (MKSI) with an Overweight rating and $145 price target implying 25% upside potential. MKS is a key critical subsystem supplier, specializing in vacuum and photonics, for leading-edge manufacturing equipment makers such as Lam Research and Applied Materials, the analyst tells investors in a research note. The firm sees the company posting mid- to high-single digit revenue growth annually, driven by its “differentiated” advanced technology portfolio, market share gains, and exposure to the secular growth in wafer fab equipment and advanced packaging.