MKS Instruments (MKSI) PT Raised to $115 at Deutsche Bank

Deutsche Bank analyst Sidney Ho raised the price target on MKS Instruments (NASDAQ: MKSI) to $115.00 (from $100.00) while maintaining a Buy rating.

The analyst commented, "Strategy not fully appreciated; raising P/T; maintain Buy. While MKSI's semis business remains stable and is not yet at an inflection point, we believe its diversification strategy remains underappreciated. With ~50% of its business not directly impacted by the semi cycle and with organic and non-organic growth opportunities in other advanced markets, MKSI is set up well to be less volatile than its semicap peers and to potentially outgrow them. Despite these attractive attributes, MKSI appears to be mispriced at ~12x CY20E EPS, which is at a significant discount to its semicap component/subsystem peer group (median of ~18x) and its industrial peer group (median of ~15x) and about in line with semicap OEM peer group (median of ~13x). We expect the combination of (1) semis business stabilizing, (2) continued growth in non-semis, and (3) inclusion of ESIO in consensus estimates to drive a re-rating of MKSI's shares."

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