Bank of America Securities has moved Keysight Technologies from a Neutral to a Buy rating and lifted its price target to $340 from $195 after the test and measurement specialist reported stronger-than-expected order trends and updated earnings guidance. The stock has climbed to $300.35, delivering a 47% return over the last six months and trading close to its 52-week high.
Keysight reported that core orders expanded 22% year-over-year in the fiscal first quarter ended in January, comfortably ahead of BofAs 11% growth expectation. According to BofA analyst David Ridley-Lane, the strength in orders was broad-based across the company's portfolio.
Following the quarter, Keysight raised its fiscal 2026 framework for adjusted earnings-per-share growth to more than 20% year-over-year, an increase from a prior outlook of more than 10%. That updated framework implies adjusted EPS of $8.59 or higher for fiscal 2026, which sits above the market consensus of $8.11.
BofAs new $340 price target is calculated using 33 times the firm's raised 2027 adjusted EPS estimate, compared with the previous target that was based on 21 times earnings. The bank noted that the 33 times multiple represents a premium to the 31 times average among peers. By contrast, Keysight currently trades at a trailing price-to-earnings ratio of 59.84, and InvestingPro analysis indicates the shares may be overvalued at current market prices.
The firm highlighted that the valuation premium reflects Keysight's above-average margins and an industry-leading share in the test and measurement sector.
Financial results for the first quarter of fiscal 2026 reinforced the upbeat tone. Keysight posted earnings per share of $2.17, ahead of the $2.00 forecast, and reported revenue of $1.6 billion versus an anticipated $1.54 billion. Management's updated guidance followed the stronger-than-expected order intake and included a robust outlook for the second quarter, with anticipated adjusted EPS and revenue ahead of analyst estimates.
UBS responded to the company's results and outlook by raising its price target on Keysight from $230 to $340 while maintaining a Buy rating, citing the strong first-quarter performance and an unexpectedly solid second-quarter outlook. Bank of America's upgrade also cited the companys raised guidance and the marked order strength.
Together, the analyst actions and Keysights revised guidance reflect a shift in sentiment among sell-side analysts toward a more constructive view on the company's near-term revenue and earnings trajectory. At the same time, market-level valuation metrics indicate the shares are trading at elevated multiples relative to both the firms historical measures and some peer metrics.
Context and market impact
Keysight's stronger order book and heightened EPS framework are primary drivers behind the recent analyst repositioning. The developments matter for investors focused on instrumentation and test-equipment suppliers, as well as for broader technology hardware and capital-equipment markets where order trends and margin profiles influence valuations and supply-chain planning.
What remains limited in the public disclosures
The companys commentary centers on the order growth and upgraded EPS framework, but publicly available remarks do not provide additional detail on the drivers beneath the order strength beyond it being broad-based, nor do they quantify the companys backlog conversion timeline in dollar terms.