- Needham claimed analyst James Ricchiuti MKS Instruments, Inc MKSI with a Buy and clip the target price $105 to $95.
- He again reduced estimates for MKS, which is due to report third-quarter ’22 results after market close on Nov. 2, amid mounting signs of a deepening WFE spending slump in 2023.
- In late September, he released revised estimates for MKS, including the recently acquired Atotech business and a dovish outlook for the legacy MKS business.
- There have been several negative data points since then, including a pre-announcement of Applied Materials, Inc AMAT and a weak WFE outlook for 2023 Lam Research Corp LRCXboth major customers of MKS, along with reports of reduced semi-cap ex costs leading semi-enterprises.
- The deteriorating WFE outlook comes at a time of new US export restrictions on US WFE and related parts and services sold in China.
- He rerated MKS as shares are likely to have bottomed in anticipation of a reduction in Street estimates.
- Price promotion: MKSI shares traded 0.04% higher at $77.66 on the last check Friday.
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