Keysight slips as Morgan Stanley downgrades on 'fewer' near-term catalysts

[Keysight Technologies campus in Silicon Valley]
Sundry Photography

* Keysight Technologies (NYSE:KEYS [https://seekingalpha.com/symbol/KEYS]) fell 1% in premarket trading on Friday as Morgan Stanley downgraded shares to Equal-Weight from Overweight.
* “We continue to see KEYS as a well-managed, well-exposed company where estimates should continue to move higher as Communications business continues to see tailwinds,” analyst Meta Marshall wrote in a note to clients. “However, with two acquisitions about to close (PowerArtist business from Ansys and Spirent business, Spirent business ex-the high speed Ethernet business), and both of those acquisitions being complicated and elongated, we are more cautious of material upside to numbers in the near term (despite expectations of accretion). Additionally, with [the] company not wanting to break out AI business sizing as part of the [communications] business, it has been difficult to catalyze a rerating. This is still a stock we could see trading up into the mid-20's on a P/E basis, but it would likely take getting closer to 6G or sizing the AI business.”

MORE ON KEYSIGHT

* Keysight Technologies, Inc. (KEYS) Presents At Goldman Sachs Communicopia + Technology Conference 2025 Transcript [https://seekingalpha.com/article/4820625-keysight-technologies-inc-keys-presents-at-goldman-sachs-communicopia-technology-conference]
* Keysight Technologies, Inc. (KEYS) Presents At Citi's 2025 Global Technology, Media And Telecommunications Conference (Transcript) [https://seekingalpha.com/article/4819139-keysight-technologies-inc-keys-presents-at-citis-2025-global-technology-media-and]
* Keysight Technologies: Fluid In Acquisitions [https://seekingalpha.com/article/4815238-keysight-technologies-fluid-in-acquisitions]
* Keysight falls despite guidance raise; analysts spy tariff headwinds [https://seekingalpha.com/news/4487509-keysight-falls-despite-guidance-raise-analysts-spy-tariff-headwinds]
* Keysight raises full-year revenue and EPS growth outlook to 7% and 13% amid resilient demand and robust AI momentum [https://seekingalpha.com/news/4487247-keysight-raises-full-year-revenue-and-eps-growth-outlook-to-7-percent-and-13-percent-amid]