Keysight Technologies Boosts Price Target to $200 with Overweight Rating

Thursday, Jul 17, 2025 2:00 pm ET1min read

JPMorgan has raised its price target for Keysight Technologies (KEYS) to $200 from $177, maintaining an Overweight rating. The firm expects strong spending in the cloud sector in the latter half of 2025, but warns that other customer segments may face challenges due to broader economic conditions. Keysight's Q3 revenue guidance is $1.3 billion to $1.325 billion, and EPS guidance is $1.63 to $1.69. The average target price from 11 analysts is $186.43, with an upside of 16.33% from the current price of $160.26.

JPMorgan has increased its price target for Keysight Technologies (KEYS) to $200 from $177, maintaining an Overweight rating. The firm's analyst, Samik Chatterjee, expects strong spending in the cloud sector in the latter half of 2025, which is driving this upward revision. However, Chatterjee also warns that other customer segments might face challenges due to broader economic conditions [1].

The average target price from 11 analysts is $186.43, implying an upside of 16.33% from the current price of $160.26 [1]. The consensus recommendation from 13 brokerage firms is currently "Outperform," indicating a positive outlook [1].

Keysight Technologies reported Q2 2025 earnings with revenue of $1.3 billion and earnings per share (EPS) of $1.70, both exceeding the high end of guidance. Orders grew 8% year-over-year and 4% sequentially, indicating strong demand [2]. The company's gross margin was 65%, and operating margin increased by 100 basis points year-over-year [2].

Looking ahead, Keysight's Q3 revenue guidance is $1.3 billion to $1.325 billion, with EPS guidance of $1.63 to $1.69 [2]. The company's annual revenue growth expectation is mid-5% to 7%, and annual EPS growth is slightly above 10% [2].

Despite the positive outlook, Keysight faces challenges such as mixed demand in the Electronic Industrial Solutions Group, a gross annualized tariff exposure of $75 to $100 million, and potential smartphone-related business softness in China [2]. The company anticipates a significant tariff impact in Q3, with full mitigation expected by the end of the fiscal year [2].

References:
[1] https://www.gurufocus.com/news/2983533/keysight-technologies-keys-price-target-boosted-by-jpmorgan-keys-stock-news
[2] https://www.marketscreener.com/quote/stock/KEYSIGHT-TECHNOLOGIES-INC-18426374/calendar/

Keysight Technologies Boosts Price Target to $200 with Overweight Rating

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