Update shared on05 Sep 2025
Despite strong Q2 results, growing AI exposure, and anticipated outperformance in wafer fab equipment through 2025–2026, analysts have adopted a cautious near-term outlook, resulting in the consensus analyst price target for MKS remaining unchanged at $122.31.
Analyst Commentary
- Bullish analysts point to strong Q2 results, with semiconductor revenues boosted by robust NAND upgrade activity and momentum in RF power solutions.
- Increasing AI exposure, with AI advanced packaging now accounting for a higher share of the overall advanced packaging business.
- The June quarter earnings are expected to exceed guidance, with a cautious outlook for the September quarter already factored in by the market.
- Outperformance anticipated in wafer fab equipment (WFE) through 2025-2026, aided by increased estimates for DRAM high bandwidth memory spending.
- MKS is viewed as well positioned for further earnings beats, benefiting from the ongoing NAND upgrade cycle and maintaining top pick status among bullish analysts.
What's in the News
- MKS was dropped from multiple Russell growth indexes, including the Russell 1000, 2500, 3000, Midcap, and Small Cap Comp Growth indexes.
- The company provided third quarter 2025 guidance, expecting revenue of $960 million (±$40M), GAAP net income of $67 million (±$21M), and GAAP EPS of $0.99 (±$0.31).
- No shares were repurchased in the most recent tranche, with the buyback program’s cumulative repurchase reaching 3,133,716 shares (5.64% of shares) for $172.26 million since inception.
Valuation Changes
Summary of Valuation Changes for MKS
- The Consensus Analyst Price Target remained effectively unchanged, at $122.31.
- The Consensus Revenue Growth forecasts for MKS remained effectively unchanged, at 5.4% per annum.
- The Net Profit Margin for MKS remained effectively unchanged, at 10.85%.
Disclaimer
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