Gold prices slip lower; consolidating after recent gains
Investing.com - Cantor Fitzgerald maintained its Overweight rating and $120.00 price target on MKS Instruments (NASDAQ:MKSI) on Tuesday.
The research firm cited MKS as "well-positioned for a beat and raise" as a "prime beneficiary of the NAND upgrade cycle." Cantor believes the company’s semiconductor revenues will prove resilient as MKS begins shipping closer to end-demand with normalized inventory levels, compared to significant under-shipment in 2023 and 2024.
Cantor addressed investor concerns about Lam Research (NASDAQ:LRCX) signaling a modest second-half decline, suggesting this outlook will likely prove conservative. The firm maintained MKS as a "Top Pick" for investors seeking growth stocks that haven’t yet appreciated but offer "significant growth potential into the upcycle."
The research firm projects wafer fabrication equipment (WFE) spending of $115 billion in calendar year 2026, which could drive MKS earnings per share upside to $10 next year. This scenario would suggest a fair value closer to $150 at a 15x multiple.
Cantor’s $120 price target reflects a more conservative 12x multiple on the same upside scenario, positioning MKS for investors looking for semiconductor equipment stocks with remaining upside potential.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.