Keysight Technologies stock rating upgraded to Neutral by BofA Securities

Investing.com - BofA Securities upgraded Keysight Technologies (NYSE:KEYS) from Underperform to Neutral on Monday, while raising its price target to $175.00 from $170.00. According to InvestingPro data, the stock currently trades at $162.45, with analyst targets ranging from $156.78 to $200.00, suggesting potential upside.

The research firm cited that revenue declines following the 5G investment peak have largely run their course. BofA Securities views orders as having reached their bottom, with downward consensus earnings revisions now complete and valuation providing a modest tailwind. The company maintains strong fundamentals with a current ratio of 3.39 and operates with moderate debt levels, as revealed in InvestingPro’s comprehensive analysis.

Pending acquisitions, including Synopsys (NASDAQ:SNPS) optical software, Ansys (NASDAQ:ANSS) PowerArtist software, and Spirent (LON:SPT), are expected to drive modest upward earnings revisions once completed, according to the research note. With a market capitalization of $28 billion and trailing twelve-month revenue of $5.1 billion, Keysight maintains a solid financial position to execute these strategic moves.

The firm noted that the wireless standards body, 3GPP, held its first meeting on 6G in March 2025, with plans to finalize 6G specifications by the first half of 2029. Based on Keysight’s historical order patterns relative to finalized specifications, BofA Securities expects 6G orders to begin significantly in the second half of 2027.

While BofA Securities no longer sees justification for an Underperform rating, it believes a Neutral stance is most appropriate given that increased business activity from 6G development remains approximately two years away.

In other recent news, Keysight Technologies has announced significant developments that may interest investors. The company has reported advancements in its product offerings with the release of an enhanced PXE Electromagnetic Interference (EMI) Receiver, which triples test speed with a 1 GHz measurement bandwidth. This upgrade aims to streamline electromagnetic compliance testing, an essential process for many industries. In a strategic move, Keysight has received clearance from the U.S. Department of Justice for its planned acquisition of Spirent Communications, contingent upon divesting certain business lines to address antitrust concerns. The acquisition is valued at $1.5 billion and is expected to be finalized in the fiscal third quarter of 2025. Additionally, Keysight has collaborated with electric vehicle manufacturer NIO to enhance the connectivity of its smart vehicles, ensuring compliance with industry standards. This partnership highlights Keysight’s role in advancing automotive technology. Furthermore, the company has announced an executive transition, with Ingrid Estrada taking over as Senior Vice President, Chief Supply Chain and Operations, following Soon Chai Gooi’s retirement. These recent developments reflect Keysight’s ongoing efforts to innovate and expand its market presence.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.