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Keysight Technologies Seeing 'Broadening Out of Strength' Across Portfolio, Morgan Stanley Says

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Keysight Technologies' (KEYS) growth is broadening across the company's portfolio as demand tied to artificial intelligence, aerospace and defense, semiconductors and wireless markets remains strong, Morgan Stanley said in a Wednesday note.

The investment firm said AI revenue grew more than 100% year over year in H1, while aerospace and defense revenue rose 24% and semiconductor revenue also increased 24%. The firm added that wireless demand remained in double-digit growth territory.

Analysts said they were encouraged by the durability of the company's growth drivers given the early stages of 6G development and multi-year investment trends in aerospace and defense.

Morgan Stanley also said Keysight has the "most room" for further acceleration among mid- to high-single-digit growth companies benefiting from AI or aerospace and defense demand.

The brokerage raised its fiscal 2026 revenue growth estimate for Keysight to 28% from 23% and increased its adjusted earnings-per-share estimate to $10.20 from $8.90. It also lifted its fiscal 2027 adjusted EPS estimate to $11.67 from $10.23.

Morgan Stanley reiterated its equalweight rating on the stock and raised its price target to $350 from $305.

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