Update shared on04 Oct 2025
Fair value Increased 3.58%Narrative Update: Revised Analyst Price Targets for MKS
Analysts have raised their price target for MKS by approximately $4 to $126.69. They cite positive momentum in semiconductor and AI-driven markets as key factors supporting the outlook.
Analyst Commentary
Recent research updates on MKS reflect a mostly optimistic sentiment, highlighting both positive developments and areas where caution may be warranted for investors.
Bullish Takeaways- Bullish analysts have identified increased demand for semiconductor equipment, particularly driven by advancements in artificial intelligence. This is considered a strong tailwind for MKS growth prospects.
- Several firms have raised their price targets for MKS following solid quarterly results, citing notable momentum in RF power solutions and increasing AI-driven revenues, especially in advanced packaging.
- Investment outlooks note a robust setup for upcoming quarters, with expectations that earnings may exceed guidance based on current sector trends and end-market strength.
- Growing exposure to high bandwidth memory and the associated rise in wafer fab equipment spending for 2025 and 2026 have contributed to increased valuation targets and positive sentiment on future execution.
- Some analysts maintain a degree of caution, referencing cautious guidance for upcoming quarters and the need for consistent performance to justify further upside in valuation.
- While AI-related markets are seen as a growth driver, execution risks remain tied to end-market volatility and the timing of industry demand inflections.
- There is acknowledgment that previous strong quarter performance sets a high bar for ongoing growth. This necessitates sustained momentum for share price support.
What's in the News
- MKS provided earnings guidance for the third quarter of 2025, expecting revenue of $960 million (plus or minus $40 million), GAAP net income of $67 million (plus or minus $21 million), and GAAP net income per diluted share of $0.99 (plus or minus $0.31). (Key Developments)
- The company announced that from April 1 to June 30, 2025, it repurchased zero shares for $0 million. This maintains the completion of repurchasing 3,133,716 shares, or 5.64% of outstanding shares, under the buyback program that began in 2011. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target has risen slightly, increasing from $122.31 to $126.69.
- Discount Rate has declined marginally, moving from 12.32% to 12.29%.
- Revenue Growth projection has decreased slightly, with estimates shifting from 5.43% to 5.41%.
- Net Profit Margin has fallen from 10.85% to 10.47%.
- Future P/E has increased from 24.04x to 25.81x, indicating a higher valuation multiple for MKS.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.