Oppenheimer Reiterates Outperform Rating on KLA

Oppenheimer analyst Ed Yang reiterated an Outperform rating and $1,800.00 price target on KLA Corporation (NASDAQ: KLAC).

“We expect KLA’s Investor Day (3/12) to recenter investors on longterm basics, away from recent external disruptions toward why it remains the premier growth franchise in semicap, outgrowing WFE with the highest margins and minimal China competition.

Management will likely deep-dive into how AI’s substantially increasing inspection and measurement intensity due to design diversity, larger, higher value chips and tougher manufacturing steps.

We think KLA could moderately raise its five-year revenue and EPS CAGR targets by ~100–200 bps, similar in magnitude to the 2022 CMD.

This might be conservative, but leaves appropriate room for cyclicality over a multi-year period, while reinforcing the company’s consistent ability to outgrow WFE.

We raise FY27E by 2%, and reiterate Outperform with a $1800 PT (39x P/E)… We view the recent pullback in KLA shares as an opportunity, resolving our main near-term concern after January’s extreme overbought conditions (+40% vs.

S&P +2%). Valuation has since moderated from ~42x to ~32x.

We believe KLA remains a must-own franchise, one of the highestquality structural AI beneficiaries within a semicap supercycle with significant longterm upside.”

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