Keysight’s Spirent Acquisition And Cyclical Recovery To Drive 12% EPS Growth In FY25; JP Morgan Upgrades Stock
Keysight Technologies Inc. (NYSE:KEYS) shares are trading higher on Monday after JP Morgan analyst Samik Chatterjee upgraded the company to Overweight from Neutral and raised the price target to $200 from $170.
The analyst’ bullish stance reflects expectations of broadening demand drivers and a cyclical recovery in end-markets through 2025.
After facing challenges in 2024, including higher capital costs, slower industry growth, and inventory digestion, the analyst sees recovery driven by the Spirent acquisition.
Chatterjee says that this will enhance Keysight’s leverage in cyclical markets and improve margins through operational synergies, moving toward a long-term target of 31% – 32% operating margins.
With earnings revisions showing upside after recent downward pressures, the analyst expects Keysight to return to premium valuation multiples, …
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