02:35 PM EDT, 05/09/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target $3 to $110, 16.5x our '25 EPS estimate, near peers and above MKSI's five-year average (~14x) on AI-fueled momentum across a variety of applications. We lift our '24 EPS view $0.33 to $4.91 and cut '25's $0.04 to $6.65. MKSI printed Q1 sales of $868M (+9% Y/Y) and EPS of $1.18, above consensus, with a solid Q2 guide but a conservative full-year outlook. Excluding ransomware effects in '23, Q1 sales declined ~10% Y/Y. The semiconductor end market (sales -3% Q/Q) saw strength in photonics solutions, which we expect to continue as node transitions accelerate, but weakness in vacuum solutions on NAND softness that we see throughout '24. We think MKSI's NAND exposure limits its multiple expansion along with its still-high debt levels ($4.9B, net leverage 4.3x) despite recent (modest) prepayments. Specialty Industrial (36% of Q1 sales) grew 1% Q/Q and 4% Y/Y (ex. ransomware) and is projected to be flat for the year, though we see downside given our bearish near-term view on the industrial market.