Needham Raises KLA Price Target to $2,000

Needham analyst Charles Shi raised the price target on KLA Corporation (NASDAQ: KLAC) to $2,000.00 (from $1,800.00) while maintaining a Buy rating.

“KLAC reported a beat-and-raise quarter but arguably the beat may be somewhat light relative to high expectations.

We think KLAC is currently supply constrained due to long product lead time and under-forecasting of ’26 demand from last year.

The good news is that the company is very confident on ’27 acceleration, which may lead to ’27 outperformance for KLAC as we see decel is more likely for peers that are outperforming this year.

Note this has happened in ’21-’22 cycle when KLAC underperformed in ’21 and vastly outperformed in ’22.

Additionally, we still believe KLAC is a through-cycle share gainer (while peers saw shares going up and down intra cycle), and view the current period of temporary underperformance (and any share price weakness) as a buying opportunity.

Our PT is increased to $2,000. Reiterate Buy.”

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