Morgan Stanley Cuts KLA Price Target to $253
Morgan Stanley analyst Shane Brett lowered the price target on KLA Corporation (NASDAQ: KLAC) to $253 (from $274) while maintaining a Overweight rating.
“Thoughts on the stock: We understand the bear thesis around KLA (2026 underperformance) and we agree that KLA will under grow WFE this year.
We remain OW KLA; however, we’re anticipating the quarter when KLA materially beats street numbers and CY27/28 estimates come up.
In the mean time, we nudge down our target multiple for KLA from 38x to 36x given derating across the cohort, which brings down our PT from $274 to $253.
We shifted our valuation base year to 2028 for most US SPE names in Semiconductor Capital Equipment: Rolling over PTs to 2028 (6 Jul 2026).
In the near-term we favor other OWs (AEIS, MKSI) given the magnitude of CY27/28 estimate revisions.”
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