MKS Instruments stock price target raised to $136 by Needham

Investing.com - Needham has raised its price target on MKS Instruments (NASDAQ:MKSI) to $136.00 from $130.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the stock has seen significant volatility recently, with an 85.9% surge over the past six months despite a 13% decline in the past week.

The firm remains constructive on MKS Instruments following meetings at SEMICON West, expecting the company’s Semiconductor business to grow low double digits in 2025 while forecasting low single-digit growth for 2026. The company maintains strong financial health, with InvestingPro analysis showing a "GOOD" overall financial score and a comfortable current ratio of 2.99x.

Needham expressed greater optimism about the potential for stronger growth in the Electronics & Packaging business, which it believes will grow high double digits in 2025 and conservatively assumes will increase mid-single digits in 2026.

The firm noted that tailwinds in packaging and more broadly from AI-related infrastructure investments could be an upside catalyst for the Electronics & Packaging segment in 2026.

Needham also expects earnings per share to benefit from ongoing debt reduction as well as from lower interest expense with the unfolding rate-cutting cycle, and potentially from the reported divestiture of the specialty industrial chemistry portion of the Atotech business.

In other recent news, MKS Instruments Inc. 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, exceeding the forecasted $1.62. Additionally, MKS Instruments reported revenue of $973 million, outperforming the anticipated $931.11 million. These results were well-received by investors, as indicated by the stock’s positive response. Analysts had projected these earnings and revenue figures, reflecting a robust performance by the company. Such financial outcomes are likely to influence future analyst recommendations and investor sentiment. The recent developments highlight the company’s ability to exceed market expectations.

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