Jefferies Lowered Price Target Following Keysight Technologies (KEYS) 3Q Outlook

Jefferies maintains a Buy rating on Keysight Technologies (NYSE: KEYS), and lowered the price target to $41.00 (from $44.00), following 2Q15 results. KEYS reported EPS beat consensus by $0.05 at $0.70. Analyst Brandon Couillard said that the initial 3Q15 outlook fell below expectations.

Couillard commented on KEYS 3Q outlook, saying, "KEYS' 3Q outlook calls for a 10% core revenue decline ($655M mid-pt / -13% vs. consensus) on softer OUS A&D & a slowdown in Comm. manuf demand. While the absolute level is reminiscent of a trough (lowest since 1Q10) and reflective of backlog burn (down ~$100M over TTM) & fewer upgrade cycle tailwinds (tough China base station comps), KEYS remains in the early innings of its transition toward higher growth verticals & we note that more resilient R&D markets are now >50% of its overall mix, which should reduce future volatility."

For an analyst ratings summary and ratings history on Keysight Technologies click here. For more ratings news on Keysight Technologies click here.

Shares of Keysight Technologies closed at $34.99 yesterday.

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