KLA’s Promising Long-term Growth Amid Short-term Challenges: A Buy Recommendation by Shane Brett CFA

Morgan Stanley analyst Shane Brett CFA maintained a Buy rating on KLA (KLAC – Research Report) yesterday and set a price target of $868.00.

Shane Brett CFA has given his Buy rating due to a combination of factors that highlight KLA’s potential for growth beyond the current challenging market conditions. Despite concerns about the second half of the year, particularly with the revenue decline in Taiwan being offset by growth in China, Brett sees significant opportunities for KLA in 2026. The company’s growth drivers, such as share gains in TSMC and DRAM, as well as opportunities with Intel, are expected to bolster its performance.
Moreover, KLA’s advancements in areas like advanced packaging and process control intensity in DRAM with the adoption of EUV technology are seen as key factors that could drive future growth. Brett acknowledges the skepticism around KLA’s share of TSMC’s capital expenditure but believes that the company’s strategic positioning and competitive dynamics will lead to a better understanding and appreciation of its growth potential. Overall, Brett’s analysis suggests that while short-term challenges exist, the long-term outlook for KLA remains promising.

In another report released on May 16, Berenberg Bank also maintained a Buy rating on the stock with a $900.00 price target.

KLAC’s price has also changed moderately for the past six months – from $639.550 to $767.510, which is a 20.01% increase.