Morgan Stanley recommends buying the dip on Keysight Technologies ‘ stock thanks to a cheap valuation. The firm upgraded the technology stock to overweight from equal weight in a Friday note, with a $165 per share price target. Morgan Stanley’s forecast implies roughly 24% upside from Thursday’s $133.12 close. Keysight stock has slipped more than 22% from the start of the year, however, with about 19% of the stock’s decline occurring in the last three months. KEYS YTD mountain Keysight Technologies stock has slipped more than 22% from the start of the year. But analyst Meta Marshall thinks the downturn in Keysight stock represents a buying opportunity for investors, driven by its potential for double-digit earnings and “defensive nature.” “We believe that KEYS should command a premium in the test & measurement, and trade in-line with greater industrial tech comparables, given attractive end-market exposures, strong management team, and double digit earnings growth potential,” Marshall said. The analyst said Keysight’s ample exposure to both 5G and artificial intelligence megatrends will help the company achieve 5% to 7% growth over the long-term. “Factoring in margin leverage, we believe there is a pathway to double digit earnings growth beginning in FY25, and as such, we believe current valuation (17x FY24 / 15x FY25) is too cheap and we are buyers of the dip,” Marshall said. — CNBC’s Michael Bloom contributed to this report.