Keysight Technologies is underrated and ready to grow within more technology spaces than the market has given it credit for, Wells Fargo said Thursday.
Aaron Rakers initiated Keysight with an overweight rating, calling it an "instrumental play on digital transformation."
Rakers said the company has the potential to increase margin by bringing up software mix.
It was spun out from Agilent Technologies, which Rakers said did not invest in the company enough for it to reach its potential.
To be sure, the company faces the risk of not being able to gain further market growth or increase margins.