$20 of EPS in 2027 in sight

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M

Idea

August 6, 2026 05:30 PM GMT

Morgan Stanley & Co. LLC

MKS Inc. | North America

Shane Brett

Equity Analyst

$20 of EPS in 2027 in sight

Joseph Moore

Equity Analyst

What’s Changed

MKS Inc. (MKSI.O)

From

To

Price Target

$442.00

$439.00

Mason Wayne

Research Associate

Ella Tulchinsky

Research Associate

AlphaSignals Earnings Reaction

Strengthens our thesis

Meaningful upside

Meaningful revision higher

Impact to our thesis

Financial results versus consensus

Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

SepQ GM% was underwhelming but we're more confident than

ever after learning why. $20 of EPS in 2027 is far closer to our

base case, Reiterate OW.

Key Takeaways

Chemistry equipment (E&P) visibility through 2027.

35%+ semi growth in 2026.

50-80bp GM% headwind for the next 2-3 quarters due to Malaysia and

Guangzhou capacity ramps.

GM% was a bit underwhelming. Going into the print, we were optimistic on GM%/

EPS as we thought palladium spot prices declining and semi volume increasing

would get GM% close to 48% in the SepQ with line of sight to 50% by late 2027.

Research Associate

Top Pick

Semiconductor Capital Equipment | United States of

America

Stock Rating

Industry View

Price target

Shr price, close (Aug 5, 2026)

Mkt cap, curr (mm)

52-Week Range

Fiscal Year Ending

EPS ($)**

Prior EPS ($)**

P/E

EPS ($)§

Div yld (%)

7.88

20.3

7.86

0.6

12.82

11.95

24.4

11.78

0.3

19.03

17.62

16.5

15.45

0.4

21.97

20.08

14.3

17.58

0.4

Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

framework

** = Based on consensus methodology

§ = Consensus data is provided by Refinitiv Estimates

e = Morgan Stanley Research estimates

headwind as they ramp up capacity in Malaysia and Guangzhou. 2) E&P Mix:

Quarter

2025

chemistry equipment is continuing to surprise to the upside, and they carry a lower

Q1

Q2

Q3

Q4

1.71

1.77

1.92

2.47

(NAND greenfield). Where does this leave us? Following discussions with

Overweight

In-Line

$439.00

$313.10

$24,480

$447.62-88.49

12/25 12/26e 12/27e 12/28e

Quarterly EPS ($)

…