The analysts also raised the KEYS price target to $164 from $146 and the BDC price target to $117 from $93. In the note to clients, focused on U.S. autos and industrial tech stocks, they said they believe cyclical headwinds should now be well understood by investors.
"Order/book-to-bill (BTB) corrections likely in the middle to later innings, and both companies trade at reasonable valuations despite solid longer-term growth drivers (with upside potential to 2025 Street consensus earnings for both companies in our view)," said the analysts.
"For Keysight that includes 800Gb/AI in the datacenter, EVs/AVs and eventually 6G. For Belden, we see opportunities in broadband (including exposure to government stimulus programs) and industrial networking," they added.
The analysts also noted that both companies have revenue and margin drivers ahead, even in a potentially choppy macro environment.
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