Wells Fargo downgrades KLA Corp. to Equal Weight following stock outperformance

As previously reported, Wells Fargo downgraded KLA Corp. (KLAC) to Equal Weight from Overweight with a price target of $920, up from $870, as shares have significantly outperformed the group and trade well above its median price to earnings at about 26-times. Wells struggles with the drivers required to deliver further 2026 upside to its already above-Street estimates. The firm is lowering its 2026 leading edge F/L forecast as it expects spending to only be driven by TSMC (TSM) 2nm + 3nm AZ with another transition year for Intel (INTC)/Samsung (SSNLF).