CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target by $115 to $755, 25x our CY 2025 EPS view, near peers but above KLAC’s three-year average (~18x) on its favorable exposure to AI and early signs of improvement across the semiconductor industry. We maintain our FY 2024 EPS estimate at $23.30, raise FY 2025’s by $0.99 to $27.29, and lift FY 2026’s by $1.71 to $32.70, boosted by the introduction of High NA EUV systems in 2025 and 2026 to support the continued push toward more advanced nodes. AI applications are driving new node investments, benefiting KLAC across multiple product lines. In our view, the semi-cap equipment market is getting more expensive, and we expect price movement from here to be driven more by earnings than by further multiple expansion; however, we see KLAC as one of the best-positioned companies in the space and see upside to growth estimates over the next several quarters as supply chain regionalization continues and major fabs open and begin to ramp. We expect sales to grow Q/Q throughout CY 2024 following Mar-Q.