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Investing.com - Stifel has raised its price target on KLA Corporation (NASDAQ:KLAC) to $1,260.00 from $1,050.00 while maintaining a Buy rating on the semiconductor equipment maker. The new target is just above KLA’s current trading price of $1,235.28, with shares hovering near their 52-week high of $1,259.55 after an impressive 97.38% year-to-date gain.
The price target increase follows KLA’s fiscal first-quarter earnings that exceeded both Stifel’s and consensus estimates, with guidance for the December quarter also coming in slightly ahead of expectations. According to InvestingPro data, KLA boasts a perfect Piotroski Score of 9, indicating exceptional financial strength, though current valuation metrics suggest the stock may be trading above its Fair Value.
Stifel noted that KLA is guiding for slightly higher revenue in the December quarter despite a steep decline in China, which represented 39% of sales in the September quarter but will drop to less than 30% in the current period. The company expects increased demand from HBM/DRAM-led memory to offset the China decline.
KLA remains on track to grow revenue by 17% in calendar year 2025, and has reiterated expectations for higher wafer fabrication equipment spending next year. The company projects calendar first-half 2026 revenue at similar to higher levels compared to 2025, with acceleration in the second half. This projection builds upon KLA’s strong recent performance, with revenue growth of 23.89% over the last twelve months.
The new price target is based on 29 times Stifel’s calendar year 2027 earnings per share estimate, representing a slight discount to the S&P Tech forward multiple, with Stifel arguing that KLA warrants a premium to the broader market based on its track record of delivering consistent, high-quality revenue growth.
In other recent news, KLA Corporation reported impressive financial results for the first fiscal quarter of 2026, surpassing analysts’ expectations. The company achieved earnings per share of $8.81, exceeding the anticipated $8.60. Additionally, KLA Corporation reported revenue of $3.21 billion, outperforming the projected $3.17 billion. These results highlight the company’s strong performance and have garnered positive attention from investors. No mergers or acquisitions were reported in this period. Analyst firms have not issued any new upgrades or downgrades for KLA Corporation. The company’s recent financial success underscores its robust operational capabilities.
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