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Keysight (KEYS) Powers Automotive Portfolio with New Solutions

Zacks Equity Research
·4 mins read

Keysight Technologies’ KEYS recently introduced two new automotive test solutions to enable car designers and manufacturers to enhance safety levels of autonomous vehicles.

Keysight’s Radar Target Simulator (“RTS”) utilizes radar test technology and enables multi-target, multi-angle testing for radar modules within in a lab. RTS provides results that balance the required throughput while ensuring quality performance.

With RTS, manufacturing engineers will be able to simulate up to three different target objects with respective front ends at variable distances of 4 meters to 300 meters while it will aid design engineers to validate radar products’ performance.

Keysight Technologies Inc. Price and Consensus

Keysight Technologies Inc. Price and Consensus
Keysight Technologies Inc. Price and Consensus

Keysight Technologies Inc. price-consensus-chart | Keysight Technologies Inc. Quote

Keysight’s latest Advanced Automotive Ethernet Software offering will identify any loss of information in any of the data transmission channels pertaining to connected cars. This will enhance performance of advanced driver assistance systems (ADAS). The solution forms a part of the company’s Automotive Ethernet Solutions’ suite.

Notably, advanced ADAS systems leverage high resolution camera and enhanced radar technology which requires faster automotive Ethernet for supporting higher data transmission speed.

Keysight’s Ethernet Solutions suite provides carmakers with comprehensive set of hardware and software required for testing and validation across Tx, Rx and link segment for automotive Ethernet speeds of 10 Mb/s, 100 Mb/s and 1000 Mb/s.

The growing clout of automotive offerings amid the increasing proliferation of connected cars, bodes well. This is expected to bolster revenues in the quarters ahead and instil investors’ confidence in the stock. Notably, shares of Keysight have declined 4.7% compared with industry’s fall of 5.3%.

Development of Connected Cars Bodes Well

Per a MarketsAndMarkets report, the worldwide connected cars market will witness a CAGR of 25.2% from 2020 to 2025. Per the report, a steady increase in car production post coronavirus outbreak will contribute to growth for connected cars market.

Moreover, the rapid deployment of 5G networks is expected to have a transformative effect on autonomous vehicles and connected cars. 5G will enable support to many connected and autonomous vehicle capabilities when integrated with network function virtualization (NFV) and software-defined networking (SDN).

Keysight has also announced collaboration with IPG Automotive and Nordsys to capitalize on momentum in autonomous driving, connected cars, and electric vehicles. The collaboration is aimed at co-development and acceleration in design of a new modular test platform to speed up the validation process of ADAS and related functions for autonomous driving.

In July, Keysight expanded its Scienlab Charging Discovery System (CDS) portfolio with two latest certification and test solutions for charging interfaces within an electric vehicle (EV) or electric vehicle supply equipment (EVSE).

With strong growth prospects in the autonomous vehicles space, Keysight’s connected car test solutions are likely to witness higher rate of adoption in the coming days, which is expected to boost the top line.

Near-Term Challenges

In spite of growth momentum of Keysight’s solutions, supply-chain disruptions and market uncertainties stemming from the coronavirus outbreak are anticipated to be persistent overhangs on the company’s performance in the near term.

Also, the auto industry has been rattled by the coronavirus pandemic. Sluggish demand for vehicles amid weak consumer confidence may hurt connected car growth prospects. This, in turn, might impact the adoption of Keysight’s automotive test solutions at least in the near term.

Zacks Rank And Other Key Picks

Keysight currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks worth considering in the broader sector are Zoom Video Communications ZM, Blackbaud BLKB and Lam Research Corporation LRCX, each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Zoom Video, Blackbaud and Lam Research are currently pegged at 25%, 7.6% and 13.3%, respectively.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>


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Lam Research Corporation (LRCX) : Free Stock Analysis Report
 
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Zoom Video Communications, Inc. (ZM) : Free Stock Analysis Report
 
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