MKS Offers Higher Dividend, Appoints New CEO
Analyst Thanos Moschopoulos of BMO Capital Markets maintains his “market perform” rating on MKS Inc (TSX: MKS), while raising his estimates for the company. The target price for MKS is set to C$11.
MKS reported its 2Q10 results ahead of the estimates, driven by lower-than-expected operating expenses. Michael Harris, MKS’ previous President and COO, has been appointed as the new CEO. Moreover, MKS raised its quarterly dividend to $0.15 per share.
Although the revenues of MKS Inc’s ALM segment were not spectacular during Q2, they reflect some stability, BMO Capital Markets says. The company’s operating margins remain healthy due to efficient cost control measures and the management of currency exposure. BMO Capital Markets has raised its EPS estimates for 2010 and 2011 to C$0.65 and C$0.68, respectively.
