Shares of MKS (MKSI) fell about 7% premarket on Wednesday after quarterly results and outlook, while analysts pointed out that investors were “looking for a more material beat.”
Morgan Stanley kept its Overweight rating on the stock with a $258 price target.
“While the MarQ guide is modestly below our expectations, MKS has exceeded its guidance by an average of 3.4% over the past eight quarters. At this stage, we remain confident the company will report ahead of MSe in 90 days. The GM% outlook is somewhat light, and we may have underestimated the seasonal headwind in the chemistry business around CNY,” said analysts led by Shane Brett.
The analysts expect the June quarter to show meaningful sequential acceleration as CNY-related chemistry weakness reverses.
Wells Fargo maintained its Equal Weight rating and $210 price target on the stock.
“While 1Q26 guide in line / modestly above, shares are under pressure AMC as we think investors were looking for a more material beat given peer results & semi cap outlooks; MKS a signif o/p’er YTD at +65% (vs SOX +15%),” said analysts led by Joe Quatrochi.
Chip equipment makers: ASML (ASML) climbed about 2%, while Lam Research (LRCX), KLA (KLAC), and Applied Materials (AMAT) rose around 1% each.