KLA Corp. downgraded to Hold from Buy at Deutsche Bank

Deutsche Bank analyst Sidney Ho downgraded KLA Corp. to Hold from Buy with a price target of $400, up from $370. KLA shares shares have outperformed the semiconductor capital equipment sector year-to-date and are benefitting from the company’s "over-indexing to a resilient foundry/logic market," Ho tells investors in a research note. However, looking forward, the analyst forecasts "growing uncertainty" around foundry/logic wafer fab equipment spend in 2023 and 2024, to which he says KLA is overexposed. He also expects the supply chain to normalize, making it less likely for KLA to outgrow the WFE market.