Upside From Newport Acquisition Supports Citi's Buy Rating On MKS Instruments

Citi analysts believe technology solutions company MKS Instruments, Inc. MKSI's recent acquisition of Newport Corp (previously traded NEWP) is underappreciated by the street.

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.

Related Link: Benzinga's Top Initiations

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.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorLong IdeasNewsInitiationAnalyst RatingsMoversTechTrading IdeasCititechnology solutions
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!