MKS Instruments’ Analyst Day Review

Deutsche Bank analysts provided their key takeaways from MKS Instruments, Inc. (NASDAQ:MKSI) Analyst Day, where the company articulated a strategy to grow into new and differentiated end-markets that should lead to a more stable revenue growth over time.

The analysts view a new revenue CAGR of over 5% (2022-27) as conservative, primarily due to the company's exposure to new segments (i.e., automotive, EVs, batteries, etc) since the acquisition of Atotech.

On the EPS target of over $13 by 2027, the analysts also see some level of caution built in by management, primarily due to a conservative debt repayment timeline compared to the company's history of disciplined and fast deleveraging.

The analysts reiterated their Buy rating and $90 price target on the company’s shares.