Keysight Technologies results ‘hardly a thesis breaker,’ says UBS

UBS lowered the firm’s price target on Keysight Technologies to $185 from $205 and keeps a Buy rating on the shares. Despite a sizeable fiscal Q1 earnings beat and "supportive" Q2 guide, Keysight shares traded down 13% due to soft orders which are expected to remain at current levels for at least the next two quarters, the analyst tells investors in a research note. The firm says this has reignited the long-standing bear thesis that 5G is past peak and the company will be unable to outgrow the looming headwind. However, it disagrees and notes the Q1 core orders were down just 6.5%, "hardly a thesis breaker" given the backdrop of tech spending pause and shortening lead times.