Update shared on 30 Nov 2025
The analyst price target for MKS has increased significantly, rising to a range of $168 to $175, as analysts cite strong recent performance, growing momentum in wafer fab equipment spending, and optimistic outlooks for the company's core businesses.
Analyst Commentary
Recent research updates reveal that sentiment surrounding MKS remains broadly positive, with several new price target increases highlighting the company's execution and growth prospects. Analysts are reacting to both near-term results and long-term industry trends in their assessments.
Bullish Takeaways- Bullish analysts cite consistent outperformance in earnings and guidance. This continues to drive valuation targets higher and supports an upward price trend.
- Momentum in wafer fabrication equipment spending is seen as a key growth driver. Recent industry checks and trade shows indicate a positive outlook through at least 2026 or 2027.
- Expectations for the company's Semiconductor business remain optimistic. Forecasts for double-digit growth in 2025 are backed by increased wafer fab investment and expanding opportunities in artificial intelligence and memory markets.
- The Electronics & Packaging segment is projected to deliver even stronger growth. Analysts highlight potential for high double-digit gains and further upside as industry demand accelerates.
- Some analysts note that expectations for 2026 wafer fab equipment demand may be elevated. They caution that continued strong execution is needed to justify ambitious projections.
- A conservative approach is being taken around growth rates in the out years, as the industry faces cyclical uncertainty and comparisons to especially strong prior periods.
- While optimism prevails in the near term, there is recognition that sustaining high rates of valuation expansion will depend on ongoing execution and successful capture of demand in both semiconductor and packaging businesses.
What's in the News
- MKS has completed a buyback program, repurchasing 3,133,716 shares. This represents 5.64% of outstanding shares, for a total of $172.26 million. No shares were repurchased in the most recent tranche. (Key Developments)
- The company has issued new earnings guidance for the fourth quarter ending December 31, 2025. It expects revenue of $990 million, plus or minus $40 million, and GAAP net income of $96 million, plus or minus $29 million. Estimated GAAP net income per diluted share is $1.42, plus or minus $0.42. (Key Developments)
Valuation Changes
- Fair Value remains unchanged at $174.85.
- Discount Rate has decreased slightly, moving from 12.5% to 12.30%.
- Revenue Growth estimate is virtually unchanged and holds steady at approximately 5.92%.
- Net Profit Margin remains stable and stays near 12.03%.
- Future P/E ratio has declined marginally, moving from 29.98x to 29.82x.
Disclaimer
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