Goldman Sachs raises KLA stock price target to $864, maintains Buy

Published 31/01/2025, 12:00
Goldman Sachs raises KLA stock price target to $864, maintains Buy

The analyst’s note also provides a comprehensive review of the key points from KLA’s recent earnings report and conference call. It includes details on the company’s impressive financial results and the upward adjustment of forecasts, which have contributed to the revised price target. With a return on equity of 97% and maintaining dividend payments for 20 consecutive years, KLA demonstrates strong operational efficiency. For deeper insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers all crucial aspects of KLA’s financial performance and market position. With a return on equity of 97% and maintaining dividend payments for 20 consecutive years, KLA demonstrates strong operational efficiency. For deeper insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers all crucial aspects of KLA’s financial performance and market position. This adjustment follows KLA’s recent financial performance, which surpassed expectations, and the company’s positive forecast for the Wafer Fab Equipment (WFE) market. KLA anticipates that the WFE market will grow by a mid-single-digit percentage year-over-year in calendar year 2025.

The analyst’s note also provides a comprehensive review of the key points from KLA’s recent earnings report and conference call. It includes details on the company’s impressive financial results and the upward adjustment of forecasts, which have contributed to the revised price target. With a return on equity of 97% and maintaining dividend payments for 20 consecutive years, KLA demonstrates strong operational efficiency. For deeper insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers all crucial aspects of KLA’s financial performance and market position. These factors are anticipated to fuel KLA’s revenue growth beyond that of the market.

In response to the strong near-term fundamentals exhibited by KLA, Goldman Sachs has revised its operating EPS estimates for the company upward by 8% for calendar year 2025 and by 3% for calendar year 2026. The new price target of $864 reflects these updated estimates and the firm’s confidence in KLA’s performance over the next 12 months.

The analyst’s note also provides a comprehensive review of the key points from KLA’s recent earnings report and conference call. It includes details on the company’s impressive financial results and the upward adjustment of forecasts, which have contributed to the revised price target. The full note by Goldman Sachs offers insights into the factors driving the positive outlook for KLA and the reasons behind the price target increase.

In other recent news, ASML (AS:ASML) reported record net sales of €9.3 billion for the fourth quarter of 2024, surpassing expectations. The robust earnings report led to an increase in shares of semiconductor equipment manufacturers Lam Research (NASDAQ:LRCX), Applied Materials (NASDAQ:AMAT), and KLA Corporation. Bernstein SocGen Group analyst Sara Russo noted that the bookings were significantly ahead of expectations.

Meanwhile, Cantor Fitzgerald maintained a positive outlook on Lam Research and KLA Corp., anticipating modest fourth-quarter earnings beats. The firm also predicts an adjustment to the 2025 earnings per share (EPS) estimates for both companies, aligning more closely with their projections.

In addition, Taiwan Semiconductor Manufacturing Co. (TSMC) announced a robust capital expenditure (capex) target for 2025, exceeding analysts’ expectations. This announcement led to significant gains in shares of semiconductor equipment manufacturers, including ASML, Lam Research, Applied Materials, and KLA Corp.

Needham analysts upgraded KLA Corporation’s stock rating from Hold to Buy, reflecting confidence in the company’s performance and its ability to outperform competitors. Moreover, KLA Corp. shares experienced a significant rise recently, marking the company’s biggest intraday increase since September 2024. These are the recent developments in the semiconductor industry.

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