Keysight Technologies KEYS recently announced that its 5G User Equipment Emulation (UEE) solutions have been adopted by Baicells.
For network infrastructure providers like Baicells, Keysight’s 5G test platforms help in adopting virtualized radio access network (vRAN) architecture and open RAN (O-RAN) standard interfaces. It also offers cost-effective solutions for a variety of use cases across the protocol, functional and performance test domains.
Baicells will leverage Keysight’s solutions to support the performance of 5G radio access and core network functionalities across variety of radio and optical interfaces.
Keysight Technologies Inc. Price and Consensus
Keysight Technologies Inc. price-consensus-chart | Keysight Technologies Inc. Quote
The latest deal win is indicative of the strength of Keysight’s test and emulation solutions. Moreover, growing clout of the company’s offerings amid accelerated deployment of 5G and is expected to bolster revenues in the quarters ahead.
Robust Growth of 5G Solutions to Fuel Growth
Keysight is witnessing a spurt in demand for its 5G testing solutions. A few days back, Comba Telecom adopted UEE solutions to validate the performance of 5G radio access as well as core network functions across a large small cell portfolio.
Last month, Keysight’s conformance and carrier acceptance test solutions were deployed by SGS to fulfill with 5G new radio (NR) certification criteria set by 3GPP and mobile operators in the U.S. and Asia-Pacific.
Prior to that, Keysight’s 5G UEE solutions were utilized by Mavenir to facilitate development of advanced software for 5G radio access network (RAN) and innovative 5G core (5GC) platforms.
Further, its 5G test platforms were selected by Arcadyan to validate consumer premises equipment (CPE) for fixed wireless access applications (FWA).
Gemtek chose Keysight’s 5G and 4G LTE test platforms to validate data rate performance of mobile devices and consumer premises equipment (CPE). Sporton selected 5G test platforms to certify 5G devices in compliance with standards specified by 3GPP and other regulatory measures.
Keysight is also witnessing higher adoption of the LoadCore offering, a 5G core network testing solution which simulates complicated real-world subscriber models.
The momentum seen in Keysight’s 5G test solutions holds promise for growth prospects over the long haul. This can be attributed to higher infrastructure investments in the deployment of 5G mobile networks due to growing need for high-speed data, increased implementation of automation technologies and rising adoption of Internet of Things (IoT) devices.
Further, work-from-home and stay-at-home trends owing to coronavirus outbreak are driving demand for high-speed connectivity. Consequently, the company’s 5G test solutions are likely to witness improved rate of adoption in the upcoming days.
Per Allied Market Research data, the global 5G technology market is anticipated to record a CAGR of 122.3% between 2021 and 2026.
COVID-19 Pandemic to Mar Performance
In spite of growing momentum for Keysight’s solutions, supply chain disruptions and market uncertainties stemming from the coronavirus outbreak are likely to be persistent overhang on the company’s performance in the near term. In second-quarter fiscal 2020, Keysight’s commercial communications (CC) revenues declined 15% year over year to $468 million.
Also, lower international spending amid the ongoing crisis led macroeconomic weakness, is expected to hurt the company’s prospects in the aerospace, defense & government (ADG) end-markets.
Zacks Rank & Key Picks
Keysight currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks worth considering in the broader sector are Apple AAPL, Blackbaud BLKB and Analog Devices ADI. While Apple and Blackbaud flaunt a Zacks Rank #1 (Strong Buy), Analog Devices carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Apple, Blackbaud and Analog Devices is currently pegged at 10.7%, 7.6%, and 13.3%, respectively.
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