Stifel Reduces KLA Price Target to $250
Stifel analyst Brian Chin lowered the price target on KLA Corporation (NASDAQ: KLAC) to $250 (from $270) while maintaining a Buy rating.
“F4Q(Jun) results exceeded ours/consensus estimates and KLA guided for further QQ and YY acceleration into F1Q(Sept) and the backhalf of the year.
Per KLA’s outlook, we now model 2H +20% (versus our prior +15% forecast).
This implies full CY26 revenue growth in the low-20s YY and semi process control system revenue +mid-20s YY, higher than our prior estimates yet shy of baseline WFE industry growth at 30%+ YY.
While this may disappoint somewhat relative to peer growth outlooks, KLA did disclose that its FY-end RPO backlog increased +60% yrto-yr, to $12.5B, aligned with its commentary around extended visibility.
We increase our CY26/27 estimates and initiate CY28 estimates, which reflect sustained earnings growth amidst a WFE spending profile we believe will favor GAA foundry/logic and DRAM/HBM.
Following recent market correction, we lower our PT to $250, which is 35x our CY28 EPS estimate.”
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