BofA Securities Reiterates Buy Rating on KLA

BofA Securities analyst Vivek Arya reiterated a Buy rating and $1,850.00 price target on KLA Corporation (NASDAQ: KLAC).

“KLAC’s Analyst Day on March 12th (postponed last June due to tariff noise) should illuminate the robust WFE demand, secular process control drivers, and product differentiation that should enable this best-in-class operating model to compound earnings consistently ahead of revenue growth.

What’s different now is the much stronger AI-driven WFE backdrop which is supporting an environment rich with dynamics that should enable KLAC to outperform.

We see: (1) continued scaling with high-NA EUV and new device architectures (4F2 DRAM, CFET, etc.) leading to new PC challenges; (2) broadening leading-edge spend that is higher mix; (3) healthy design-start environment; (4) WFE mix that should begin favoring KLAC as logic mix starts expanding again from 62% in CY26E to 64%+ CY28E and as tech inflections proliferate.

Reit. Buy as these are all highly constructive factors LT, however, NT we suspect memory-biased names (LRCX/AMAT) could continue to outperform at least in the next 12-18 months.”

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