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SANTA ROSA, Calif. - Keysight Technologies , Inc. (NYSE: NYSE:KEYS), through its device security research lab Riscure Security Solutions, has completed the first Car Connectivity Consortium (CCC) Digital Key Applet (DKA) certification for NXP Semiconductors (NASDAQ:NXPI). This certification marks a significant advancement in the security of digital key solutions for the automotive industry.
The CCC DKA certification program aims to secure digital key solutions that protect user privacy and security. It employs advanced public key protocols, hardware-based key storage, and wireless transmission standards to ensure secure user access to vehicles. The program also facilitates the integration of additional vehicle functionalities such as car sharing and rentals.
By obtaining this certification, NXP, in collaboration with Riscure Security Solutions, demonstrates its capability to develop secure automotive products that meet high assurance levels comparable to EAL 4 + AVA_VAN.5 of the Common Criteria program. This certification is crucial for the automotive industry as it builds trust in the security of next-generation vehicles and supports the adoption of the CCC Digital Key system.
Keysight supports the automotive industry's security needs by offering a variety of Automotive Testing Services. It helps automotive vendors test and certify their solutions against stringent security requirements, in line with regulations such as UN R155 and R156.
Georg Stütz, Head of IoT and Automotive Certification at NXP, emphasized the importance of industry standards like CCC in building consumer trust through interoperability and security.
Keysight Technologies has been the subject of multiple analyst notes. JPMorgan has reduced Keysight's price target due to concerns about margin outcomes within the Electronic Industrial Solutions Group (EISG) and modest quarterly revenue declines. However, JPMorgan has slightly increased its fiscal year 2024 revenue estimates for Keysight after a solid second-quarter performance.
Baird, on the other hand, increased its price target on Keysight shares, noting stable end demand and anticipating a broader recovery starting in fiscal year 2025.
Goldman Sachs raised its price target for Keysight, maintaining a Buy rating. The firm noted that despite a slight downturn in the third-quarter forecast, Keysight's stable book-to-bill ratio is seen as a positive sign. The long-term outlook is bolstered by several factors, including Keysight's involvement in sectors with strong secular trends and increasing mix of software and services.
Edward Jones maintained a Buy rating on Keysight stock, highlighting the company's growth opportunities in the automotive electronics and electric vehicle sectors. The firm also underscored Keysight's role in the data networking equipment market and its potential growth in the quantum computing field.
In the company's recent earnings call, Keysight reported a successful fiscal second quarter in 2024, with revenues hitting $1.2 billion and earnings per share (EPS) of $1.41, surpassing analyst expectations. The company is positioning itself to leverage upcoming technology trends through strategic investments in research and development (R&D) and mergers and acquisitions (M&A), including the recent acquisition of Spirent Communications and the completed purchase of Riscure.
InvestingPro Insights
Keysight Technologies, Inc. (NYSE: KEYS), known for its innovative contributions to the automotive industry, notably through its device security research lab Riscure Security Solutions, has recently achieved a milestone with the CCC Digital Key Applet certification. This accomplishment reflects the company's commitment to enhancing vehicle security—a factor that is increasingly important to consumers and manufacturers alike.
InvestingPro data indicates that Keysight Technologies has a market capitalization of $24.28 billion, showcasing its significant presence in the industry. The company's P/E ratio stands at 30.2, which aligns with its performance over the last twelve months as of Q2 2024. Despite the challenges, Keysight has maintained a gross profit margin of 64.16%, emphasizing its ability to manage costs effectively.
Analysts, however, have revised their earnings expectations downwards for the upcoming period and anticipate a sales decline in the current year, which may be a point of concern for investors. Nevertheless, Keysight's stock is known to trade with low price volatility, offering some stability in a fluctuating market. Additionally, the company's liquid assets exceed its short-term obligations, indicating a sound liquidity position that can support ongoing operations and investments in security advancements like the CCC DKA certification.
InvestingPro Tips suggest that while Keysight operates with a moderate level of debt, analysts remain positive about the company's profitability this year. Moreover, Keysight has been profitable over the last twelve months, which is a testament to its robust business model and market strategy.
For investors interested in a more comprehensive analysis and additional insights on Keysight Technologies, there are 8 more InvestingPro Tips available at https://www.investing.com/pro/KEYS. To access these insights and benefit from the full range of features offered by InvestingPro, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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