MKS Instruments Is 'Gaining Traction' In Advanced Technologies, Analyst Says

Shares of MKS Instruments Inc MKSI have lost more than 17% over the past six months.

The company is a market leader in 20 product categories and has a "strong set of tier-1 customers," according to JPMorgan.

Analyst Peter Peng initiated coverage of MKS Instruments with an Overweight rating and a price target of $145.

The MKS Instruments Thesis: The company is well positioned to benefit from strong wafer fabrication equipment spending in advanced logic, "combined with major technology inflections such as advanced packaging, high bandwidth memory, gate-all-around transistors, and backside power distributions," Peng said in the initiation note.

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MKS Instruments is "gaining traction in process control and lithography applications due to its optical and optical subsystems, precision motion, and laser product lines," the analyst stated. While the company historically had less exposure in these areas, it now seems well positioned for market share gains, he added.

MKS Instruments is likely to generate mid- to high- single-digit percentage revenue growth, "driven by its differentiated advanced technology/IP portfolio, market share gains, and strong exposure to the secular growth in WFE and advanced packaging," Peng further wrote.

MKSI Price Action: Shares of MKS Instruments were down 0.78% to $112.02 at the time of publication on Friday.

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