Analyst Note| William Kerwin |
We maintain our $175 fair value estimate for wide-moat Keysight Technologies after the company's 2023 investor day. Keysight’s executive team largely emphasized continuity of the firm’s existing strategy, which we see as having generated shareholder value and carved a wide economic moat. The firm provided updated financial targets for fiscal 2026, which were above the prior targets from its 2020 investor day but largely in line with our existing forecast. While we see the long-term prospects as bright for Keysight, the current fiscal year should remain a tough environment, as management mentioned during the first-quarter earnings call two weeks ago. We see the shares as close to fairly valued.