According to Citi, "The Newport transaction not only diversifies the revenue base to an even 50/50 split of semi and non-semi business, but it also opens the door to new customers in the semiconductor space."
Analysts at Citi also highlighted a strong management track record of driving revenue opportunities, achieving operational efficiencies and commitment to driving paying down the debt from the acquisition quickly.
The acquisition of Newport announced earlier in 2016 is said to present a $4.8 billion serviceable addressable market opportunity. MKS Instruments paid $897 million for Newport Corporation.
Citi initiated its ratings at a Buy rating on MKS Instruments with a $59 price target.
MK traded down 1.23 percent at $48.09 at last check Thursday.
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