Goldman Sachs has revised its price target for Keysight Technologies (KEYS, Financial), reducing it from $192 to $176, while maintaining a Buy rating on the stock. This adjustment comes as the firm reassesses its outlook on the automotive sector due to current market dynamics.
The revision reflects concerns over the industry's ability to absorb and pass on tariff-related costs amidst weakening consumer demand. Although auto manufacturers can partially counteract tariffs with strategic pricing, both producers and suppliers are expected to face some negative impact. Moreover, the forecast considers the growing competitiveness of Chinese automakers and anticipates a slower transition to electric vehicles in the U.S. and potentially Europe.
These sector-specific challenges are influencing Goldman Sachs' updated projections, underscoring the complexities facing the automotive industry and its supply chains.
