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Research Alert: CFRA Lowers Opinion On Kla Corporation To Hold From Buy
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Research Alert: CFRA Lowers Opinion On Kla Corporation To Hold From Buy
Sep 23, 2025 12:10 PM

02:50 PM EDT, 09/23/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our price target by $216 to $1,234, 32x our FY 27 (Jun.) EPS view, well above KLAC's three-year average (~20.5x) given substantial AI upside as major spending initiatives continue to impress. We raise our FY 26 EPS view by $0.53 to $35.13 and FY 27's by $0.75 to $38.55. Recent AI infrastructure project announcements (i.e., NVDA's $100B OpenAI investment) are providing a more tangible path to lofty investment goals referenced by Stargate ($500B) and other AI projects, with additional support from consistent increases in hyperscalers' capex plans, providing a strong backdrop for outperformance at the leading edge to keep up with AI demand. However, despite our higher target price, we are downgrading shares as we think results could be more volatile (vs. peers) over the next few quarters given KLAC's exposure to fab ramps in China, where we think activity may disappoint on soft industrial data and ongoing U.S. trade negotiations, while shares (+20% in the past month) reflect bullish expectations.

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