According to Goldman Sachs, shares of Keysight Technologies look set for a reset, as both the auto and communications infrastructure industries face a tough macro environment ahead. Analyst Mark Delaney downgraded shares of the electronic design and test solutions company that supplies products to industries such as auto, from buy to neutral. He cited increased risk in a shrinking communications infrastructure market and premium valuation of the company relative to peers. “We expect a slowdown in telecom/communications infrastructure capex given the weak macroeconomic backdrop, which could negatively impact Keysight’s business,” Delaney wrote in a Tuesday note. He added that based on valuation and price-to-earnings, the stock trades at a 35% to 40% premium to its peers, albeit with limited upside opportunity. The firm’s revised $189 price target, down from $196, suggests shares could gain 6% from Tuesday’s close, while other buy-rated stocks in the firm’s coverage offer an average of 22% upside, Delaney said. . Despite these lingering headwinds, Delaney stock is positive over the long term, viewing revenue from the company’s products and recurring software, among other things, as tools that could help Keysight maintain a solid financial position. even if capital expenditure is slow. “Importantly, we consider Keysight to be the leader in the testing market and one of the better-performing companies in our coverage (given its strong margins and market share) and we will look more positive on the stock again if we see the signs.” Let’s see if orders pick up again and/or if we see a better set-up in terms of fundamentals relative to Street estimates,” he wrote. Delaney cut his price target on Rivian’s shares from $41 per share to $19 in the same note, despite confidence in the company’s long-term fundamentals. “We lower our revenue estimates on lower shipment assumptions to better reflect the company’s ramp progress and supply chain, while increasing our EPS estimates in 2023 on lower loss-making unit sales and lower” operating expenses, they wrote. Delaney named General Motors and Tesla as his favorite picks in 2023, noting that both companies are leading the way to autonomy. “We like TSLA and GM (with Tesla a cost and technology leader in EVs/clean mobility, and both Tesla and GM Cruise among the leaders in autonomy),” the analyst said. — CNBC’s Michael Bloom contributed reporting