- Needham Analyst James Ricchiuti reiterated a Buy rating on the shares of MKS Instruments Inc MKSI with a Price target of $90.00.
- MKS is scheduled to host its first Analyst Day in two years in Boston on December 14, 2022.
- The analyst expects the company to provide a broader view of the opportunities arising from the combination of Atotech’s specialty chemicals business and coating equipment old PCB laser drilling shop from MKS.
- The analyst doesn’t think investors place much value on the combined company’s capabilities in advanced circuit board manufacturing and packaging substrates, but believes these represent high growth opportunities for MKS over the next several years.
- Ricchiuti thinks MKS’s downward revision has set the bar low enough for the semiconductor business that the company may be over-delivering.
- The analyst expects investors will also increasingly focus on the improving outlook for the semiconductor business in 2024, as 2023 may mark the bottom of the cycle for this part of MKS’s business.
- MKS has a long history of financing M&A with debt and then deleveraging it in a relatively short period of time.
- The sharp rise in interest rates from the Atotech acquisition’s announcement in July 2021 to its closing in mid-August 2022 has been a significant headwind, although the analyst expects MKS to highlight the combined company’s cash-generating potential and reiterate its emphasis on deleveraging.
- Price promotion: MKSI shares are trading up 1.54% at $83.27 on the latest check Monday.
© 2022 Benzinga.de. Benzinga does not provide investment advice. All rights reserved.
[ad_2]
Source story
