Analyst Brian Chin of Stifel Nicolaus maintained a Buy rating on KLA, boosting the price target to $1,260.00.
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Brian Chin has given his Buy rating due to a combination of factors that highlight KLA’s resilience and growth potential. Despite a significant decline in sales to China, KLA has managed to maintain a positive revenue outlook for the upcoming quarter, driven by strong demand in the HBM/DRAM memory sector. This ability to offset declines in one market with growth in another demonstrates KLA’s robust business model.
Furthermore, KLA’s consistent track record of high-quality revenue growth supports its valuation premium relative to the broader market. The company’s strategic focus on advanced packaging and process control improvements is expected to continue driving growth, with management projecting an increase in revenue and WFE spending in the coming years. These factors collectively underpin Brian Chin’s confidence in KLA’s future performance, justifying the Buy rating.
In another report released today, Needham also maintained a Buy rating on the stock with a $1,350.00 price target.