MKS Instruments stock holds Overweight rating as KeyBanc sees potential in chemical division sale

Published 13/10/2025, 15:22
MKS Instruments stock holds Overweight rating as KeyBanc sees potential in chemical division sale

Investing.com - MKS Instruments (NASDAQ:MKSI), a technology company with a market capitalization of $8.7 billion and annual revenue of $3.74 billion, maintained its Overweight rating and $160.00 price target from KeyBanc on Monday. InvestingPro analysis suggests the stock is currently trading above its Fair Value.

The rating reaffirmation follows weekend news reports that MKS Instruments is considering selling a $1 billion specialty chemical division to focus on supplying semiconductor manufacturers like TSMC.

While the specific division wasn’t named in the reports, KeyBanc believes it’s likely associated with industrial businesses acquired through the Atotech acquisition.

According to KeyBanc, the potential sale could simplify MKS Instruments’ business model and accelerate debt reduction, potentially resulting in multiple expansion that would benefit investors.

The reports indicate MKS Instruments has engaged with advisors regarding the potential transaction, though no information about possible timing for a deal was provided.

In other recent news, MKS Instruments has reported its financial results for the second quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.77, which exceeded the forecasted $1.62. Additionally, MKS Instruments reported revenues of $973 million, surpassing the anticipated $931.11 million. In another development, Needham has raised its price target for MKS Instruments to $136 from $130, maintaining a Buy rating on the stock. The firm expressed optimism about the company’s growth prospects, particularly in its Semiconductor business. Needham expects this segment to grow in low double digits by 2025 and forecasts low single-digit growth for 2026. These developments reflect recent positive momentum for MKS Instruments.

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