Morgan Stanley analyst Shane Brett CFA has maintained their neutral stance on KLAC stock, giving a Hold rating today.
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Shane Brett CFA’s rating is based on a combination of factors that reflect both positive and challenging aspects of KLA’s current and future performance. The company reported better-than-expected results for the September quarter and provided guidance for the December quarter that aligns with market expectations. A notable highlight was the strong performance in DRAM shipments, which is projected to increase significantly, offsetting declines in other areas such as the China foundry logic segment.
Despite these positive developments, there are concerns about KLA’s future outlook, particularly regarding the impact of the BIS 50% affiliate rule and potential revenue declines in China. However, KLA has addressed some of these concerns by dispelling fears about its 2026 outlook, especially in terms of RPO and DRAM, and has shown confidence in future growth driven by advanced packaging. This balanced view of both opportunities and risks has led to the Hold rating, as the stock is seen as fairly valued given the current circumstances.
Brett CFA covers the Technology sector, focusing on stocks such as Lam Research, Applied Materials, and KLA. According to TipRanks, Brett CFA has an average return of 21.1% and a 75.00% success rate on recommended stocks.