Oppenheimer Boosts KLA Price Target to $260

Oppenheimer analyst Ed Yang raised the price target on KLA Corporation (NASDAQ: KLAC) to $260 (from $200) while maintaining an Outperform rating.

“We raise KLA’s FY27E revenue/EPS by 2%/3%, our PT to $260 (~50x P/E), and expect 7/28 earnings to accentuate AI’s continuing tale of two cities: semiconductor infrastructure remains supply-constrained with accelerating capacity plans (ASML, AEHR), while legacy software/services face budget reallocation pressure (IBM).

Yet, semicap guidance is backwards-looking to hyperscaler capex intentions, which has quadrupled since 2024 to >$1T 2027E and increasingly debt financed, leaving the group sensitive to sporadic AI funding/ROI debates.

With KLA still +85% YTD (vs.

SOX +75% and S&P +11%), and ~41x forward P/E versus ~21x historically, though below ~55x recent highs, we expect continued volatility, but see the recent ~25% pullback as a buyable dip on future upward revisions and a rising scarcity premium as AI leadership narrows.”

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