In a report released today, Shane Brett CFA from Morgan Stanley maintained a Buy rating on KLA (KLAC – Research Report), with a price target of $870.00.
Shane Brett CFA’s rating is based on several strategic factors that suggest KLA’s potential for growth and resilience in the semiconductor equipment market. One of the key considerations is KLA’s anticipated growth in market share with TSMC, driven by increased process control intensity, which is expected to counter investor skepticism about a potential decline. Additionally, the upcoming Investor Day is seen as a significant event, with expectations that KLA will unveil advancements in their EUVL mask inspection equipment, potentially boosting their competitive edge.
Another factor influencing the Buy rating is KLA’s strong position in China, where it is believed to have a deeper moat compared to competitors like AMAT and LAM. Despite uncertainties in the broader market due to macroeconomic factors and tariffs, KLA’s limited exposure to weaker areas such as memory and its strategic focus on advanced packaging and process control intensity in logic and DRAM are seen as catalysts for outperformance. The company’s ability to navigate tariff impacts and maintain strategic customer relationships further supports the positive outlook.
According to TipRanks, Brett CFA is a 2-star analyst with an average return of 0.0% and a 42.86% success rate. Brett CFA covers the Technology sector, focusing on stocks such as Teradyne, KLA, and MKS Instruments.
In another report released on March 28, Citi also maintained a Buy rating on the stock with a $910.00 price target.