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MKS Instruments initiated with a Buy at BofA

BofA analyst Vivek Arya initiated coverage of MKS Instruments with a Buy rating and $160 price target. As the leading vendor of proprietary, high-precision vacuum, photonic, laser, chemical and packaging sub-systems that are critical parts of larger tools sold by leading wafer fab equipment, or WFE, customers, the firm sees an earnings inflection ahead, the analyst tells investors. The firm cites a reacceleration in WFE demand, driven by leading-edge AI chips, recovering PC and smartphone markets and global fab reshoring, along with balance sheet de-levering, for its Buy rating.

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