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Investing.com - TD Cowen raised its price target on KLA Corporation (NASDAQ:KLAC) to $1,300 from $900 while maintaining its rating on the semiconductor equipment manufacturer. The new target represents a slight upside from the current stock price of $1,235.21, with shares already trading near their 52-week high of $1,259.55.
The significant price target increase follows what TD Cowen described as "good results" from KLA, with the firm noting that the company remains positioned to outperform wafer fabrication equipment (WFE) growth, though this performance gap may be narrowing after a strong calendar year 2025. KLA has demonstrated impressive financial performance with revenue growth of 23.89% over the last twelve months and maintains a perfect Piotroski Score of 9, according to InvestingPro data.
Advanced packaging represents a particularly promising area for KLA, with TD Cowen highlighting share gain opportunities and expectations that this segment’s WFE growth will outpace front-end equipment in 2026.
The firm’s guidance indicates strength in the fourth calendar quarter, with TD Cowen suggesting semiconductor equipment peers could experience similar positive dynamics in the first quarter of 2026, given that process control equipment lead times exceed those for deposition and etch equipment.
TD Cowen’s new $1,300 price target is based on a multiple of 35 times the company’s projected calendar year 2026 earnings per share.
In other recent news, KLA Corporation reported its first fiscal quarter of 2026 results, surpassing analysts’ expectations. The company achieved earnings per share of $8.81, exceeding the anticipated $8.60, and posted revenue of $3.21 billion, which was higher than the projected $3.17 billion. These results have led to a positive outlook for the company’s future performance. Additionally, Stifel has raised its price target for KLA to $1,260 from $1,050, maintaining a Buy rating on the semiconductor equipment maker. This upgrade follows the company’s earnings that not only exceeded Stifel’s estimates but also surpassed consensus expectations. KLA’s guidance for the December quarter also came in slightly ahead of expectations, contributing to the positive sentiment. These developments indicate a strong performance trajectory for KLA in the coming months.
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