In a report released today, James Ricchiuti from Needham reiterated a Buy rating on MKS Instruments (MKSI – Research Report), with a price target of $145.00.
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James Ricchiuti has given his Buy rating due to a combination of factors that highlight both the challenges and opportunities for MKS Instruments. Despite uncertainties around the strength of the wafer fabrication equipment market in 2025 and some macroeconomic concerns affecting parts of MKS’s Specialty Industrial division, the company delivered a robust performance in the fourth quarter. Their revenues and earnings per share surpassed both the midpoint of guidance and market expectations.
Looking forward, although the first quarter earnings guidance was lower than anticipated due to increased operating expenses and a higher tax rate, there are positive developments. MKS is seeing promising signs in the NAND segment within Semiconductors and in equipment and chemistry for Advanced Packaging. Additionally, operating expenses are expected to stabilize after the first quarter, and the company is focusing on reducing its debt. Despite lowering estimates for 2025, Ricchiuti considers the current price levels to present an attractive risk-reward scenario, justifying the Buy rating.