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Investing.com - KeyBanc raised its price target on MKS Instruments (NASDAQ:MKSI) to $180.00 from $160.00 on Friday, while maintaining an Overweight rating on the stock. The new target approaches the analyst high target of $190, with the stock currently trading at $155.25 and sitting just 1% below its 52-week high of $157.23, according to InvestingPro data.
The investment firm cited expectations that MKS Instruments’ Semiconductor business will benefit from an improving wafer fabrication equipment (WFE) environment for both leading-edge logic and memory. KeyBanc noted this plays into the company’s strong position supporting deposition and etch tools. This optimism aligns with InvestingPro data showing 11 analysts have revised their earnings upwards for the upcoming period, with the company expected to be profitable this year.
In the Electronics & Packaging segment, KeyBanc expects MKS to benefit from increasing printed circuit board (PCB) and substrate complexity, with layer count reportedly moving from 40 to 120+, which should drive demand for the company’s chemistries and equipment.
KeyBanc believes these market dynamics should allow MKS Instruments to meet or exceed its 47% gross margin target, driving free cash flow and further debt reduction. The company is already close to this target with a current gross profit margin of 46.95%, while its strong liquidity position (current ratio of 2.86) provides flexibility as it works to reduce its $4.55 billion in debt.
MKS Instruments shares increased following its third-quarter earnings call, outperforming in a down market, according to KeyBanc’s analysis. The stock has delivered remarkable returns, gaining 8.03% in the past week and 109.94% over the last six months. For deeper insights including Fair Value estimates and 12 additional ProTips on MKSI, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, MKS Instruments reported stronger-than-expected earnings for the third quarter of 2025. The company’s earnings per share reached $1.93, surpassing analysts’ forecasts of $1.84. Additionally, revenue came in at $988 million, exceeding the projected $963.87 million. MKS Instruments also guided its December quarter revenue to remain approximately flat quarter-over-quarter at $990 million, which is above the consensus estimate of $954 million. In light of these developments, Mizuho raised its price target for MKS Instruments from $147 to $175 while maintaining an Outperform rating. These recent developments reflect the company’s robust financial performance and positive outlook as assessed by analysts.
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