JPMorgan Lowers KLA Price Target to $200

JPMorgan analyst Harlan Sur lowered the price target on KLA Corporation (NASDAQ: KLAC) to $200.00 (from $1,950.00) while maintaining an Overweight rating.

“We believe semiconductor capital spending is in the midst of a technology-driven cycle for 3nm/2nm Foundry/Logic, sub- 15nm DRAM, and high layer count 3D NAND.

As device manufacturing complexities increase, the need to analyze defects and metrology issues at critical points in the IC manufacturing processes increases significantly.

The company has diversified end-market exposure (e.g., PCB, SPTS, Advanced Packaging) through the acquisition of Orbotech.

Served market expansion of its end markets, market share gains, technological leadership, and premium margin profile should enable the company to outgrow (by 5%-plus) the overall market and drive an EPS CAGR of 15-20% over the next three years.”

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