Morgan Stanley Lowers KLA Price Target to $227
- Rating
- Buy
- Price target
- $227
- from $253
- Implied upside
- +10%
- vs $206.85 prior close
Morgan Stanley analyst Shane Brett lowered the price target on KLA Corporation (NASDAQ: KLAC) to $227 (from $253) while maintaining an Overweight rating.
“Where does this leave us? Conflicted on market dynamics but confident on 2027.
Supply constrains will ease, leading logic mix will become a tailwind, and we do model KLA to outgrow WFE in 2027 (42% vs 37%).
However, we’re doing more work around whether WFE is becoming more of a volume market.
We revise up our leading logic forecasts and tweak up GM%, which brings up our CY27 forecast from $20.4bn/$6.23 to $21.4bn/$6.77.
Consistent with what we’ve done with peers, we lower our target multiple from 36x to 28x, a 20% premium to it’s average since 2020, which brings down our PT from $253 to $227.”
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Tracking this call
Since this note−5% KLAC $206.85 → $196.83 (Oct 7) · moving away from the target
This callScored on Apr 7, 2027, six months after the note: did KLAC reach $227?
Firm track recordMorgan Stanley reached 67% of its 54 scored targets within six months (#16 of 31 firms); on KLA, 3 of 3. Accuracy ranking →
Targets are adjusted for the 10-for-1 split on Jun 12, 2026, so every call is in the same share terms as this note.
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