KLA Corp. recent 20% selloff overblown, says Deutsche Bank

Deutsche Bank views the 20% pullback in KLA Corp. (KLAC) shares since ASML (ASML) kicked off earnings season on October 14 as overblown. Fears of a weaker leading-edge wafer fab equipment environment and China risks have weighed across the group and on KLA in particular, the analyst tells investors in a research note. The firm agrees that a slowdown in spending by the number two and three foundry players is a negative across the industry, but does not believe the downside risk is as high as some peer reports would imply. KLA should fare no worse than in-line with its peers, says Deutsche Bank, which keeps a Buy rating on the shares with an $890 price target