"Keysight Technologies Faces Setback as BofA Downgrades Amid Cooling 5G Demand"
Keysight Technologies shares dropped nearly 3% after Bank of America downgraded the company due to cooling 5G demand. The analyst cited expectations of a greater-than-expected decline in third-quarter orders, potentially extending into fiscal 2024. Peers in the industry have also experienced significant order declines. Despite ongoing investment in new 5G use cases, the macro backdrop is likely to limit EPS growth. Keysight's recent acquisition of ESI Group is seen as consistent with its strategy, although slightly dilutive to adjusted earnings per share in fiscal 2024.