Analyst Vivek Arya from Bank of America Securities reiterated a Buy rating on KLA and increased the price target to $1,000.00 from $825.00.
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Vivek Arya’s rating is based on several compelling factors that suggest KLA is well-positioned for future growth. The company has reported sales and earnings per share that exceeded market expectations, and it has provided optimistic guidance for the upcoming quarter. KLA is benefiting from trends in artificial intelligence and high-performance computing, which are driving demand for advanced process control technologies. The company is expected to outperform in the wafer fabrication equipment market, with management indicating potential growth in 2026, contrasting with the cautious outlook of its peers.
Furthermore, KLA’s market share in wafer fabrication equipment is nearing 7.25%, with opportunities for expansion due to its strong presence in leading-edge foundry and logic markets. The company’s financial health is robust, with free cash flow margins significantly higher than its competitors, supporting capital returns. Despite some risks such as tariff impacts and rising operating expenses, KLA’s premium valuation is justified by its superior margins and execution on strategic growth drivers, leading to an increased price objective of $1,000.
Arya covers the Technology sector, focusing on stocks such as Advanced Micro Devices, ON Semiconductor, and Nvidia. According to TipRanks, Arya has an average return of 20.4% and a 64.19% success rate on recommended stocks.
In another report released today, Citi also maintained a Buy rating on the stock with a $1,060.00 price target.