KLA (NASDAQ:KLAC) Given New $1,950.00 Price Target at Argus

Key Points

• Argus raised its price target on KLA to $1,950 (from $1,750) and kept a "buy" rating, joining other brokers that have pushed targets toward $2,000, implying further upside versus the prior close.
• KLA beat Q3 expectations with $9.40 EPS and $3.42B revenue, and management boosted shareholder returns with a higher dividend and a $7 billion share buyback authorization (about 3.7% of shares).
• Despite the beat and bullish analyst moves, shares fell ~3.6% as the stock trades at a rich valuation (~50x 2026 EPS) after a large run-up, raising short-term profit-taking risk.

KLA (NASDAQ:KLAC - Get Free Report) had its target price boosted by Argus from $1,750.00 to $1,950.00 in a research report issued on Friday,MarketScreener reports. The firm presently has a "buy" rating on the semiconductor company's stock. Argus' price target suggests a potential upside of 11.41% from the stock's previous close.

A number of other brokerages also recently commented on KLAC. Citigroup reiterated a "buy" rating on shares of KLA in a report on Friday. TD Cowen raised their target price on shares of KLA from $1,800.00 to $2,000.00 and gave the stock a "buy" rating in a research report on Thursday. KeyCorp reiterated a "sector weight" rating on shares of KLA in a report on Friday, March 13th. Cantor Fitzgerald increased their price target on KLA from $1,850.00 to $2,000.00 and gave the stock an "overweight" rating in a research note on Monday, March 30th. Finally, Wolfe Research lifted their price objective on KLA from $1,800.00 to $2,000.00 and gave the company an "outperform" rating in a research report on Friday, April 10th. Twenty analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $1,788.52.

KLA Stock Down 3.6%

Shares of NASDAQ:KLAC opened at $1,750.35 on Friday. The company has a quick ratio of 2.00, a current ratio of 2.83 and a debt-to-equity ratio of 1.08. The company has a market capitalization of $229.43 billion, a P/E ratio of 49.54, a P/E/G ratio of 3.43 and a beta of 1.44. KLA has a 52-week low of $674.76 and a 52-week high of $1,939.36. The stock's fifty day simple moving average is $1,586.36 and its 200-day simple moving average is $1,391.30.

KLA (NASDAQ:KLAC - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The semiconductor company reported $9.40 EPS for the quarter, topping analysts' consensus estimates of $9.17 by $0.23. KLA had a return on equity of 95.45% and a net margin of 35.66%.The firm had revenue of $3.42 billion during the quarter, compared to analysts' expectations of $3.37 billion. During the same quarter last year, the business posted $8.41 EPS. The firm's quarterly revenue was up 11.5% compared to the same quarter last year. KLA has set its Q4 2026 guidance at 8.870-10.870 EPS. As a group, equities research analysts forecast that KLA will post 36.64 earnings per share for the current fiscal year.

KLA announced that its board has initiated a share buyback plan on Thursday, March 12th that permits the company to buyback $7.00 billion in shares. This buyback authorization permits the semiconductor company to reacquire up to 3.7% of its shares through open market purchases. Shares buyback plans are usually an indication that the company's management believes its shares are undervalued.

Institutional Trading of KLA

A number of institutional investors have recently modified their holdings of KLAC. Basepoint Wealth LLC purchased a new position in KLA in the fourth quarter valued at approximately $32,000. Arlington Trust Co LLC grew its stake in KLA by 125.0% during the third quarter. Arlington Trust Co LLC now owns 36 shares of the semiconductor company's stock worth $39,000 after buying an additional 20 shares during the period. Triumph Capital Management purchased a new stake in KLA during the third quarter worth approximately $40,000. Hilton Head Capital Partners LLC acquired a new stake in shares of KLA in the fourth quarter worth $41,000. Finally, Steigerwald Gordon & Koch Inc. purchased a new position in shares of KLA in the 3rd quarter valued at $43,000. Hedge funds and other institutional investors own 86.65% of the company's stock.

Key Stories Impacting KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA beat Q3 expectations on both EPS and revenue, showing continued demand for its process-control tools. Strong operating cash flow and free cash flow figures were highlighted in the release. Press Release
• Positive Sentiment: Management raised shareholder returns: a higher quarterly dividend ($2.30/share) starting in May and an additional $7 billion share repurchase authorization — a clear cash-return catalyst. Press Release
• Positive Sentiment: Broker support picked up: multiple firms raised price targets and maintained bullish ratings (Needham to $2,000; Wells Fargo to $2,100; JPMorgan raised its target), which provides mid-term upside thesis for investors focused on AI-driven chip demand. Broker Notes
• Neutral Sentiment: KLA guided Q4 EPS to a range of $8.87–$10.87 (consensus ~$9.80) and revenue $3.4B–$3.8B (consensus ~$3.5B) — the midpoint is roughly in line with Street expectations but the wide ranges left some investors uncertain. Earnings/Guidance
• Neutral Sentiment: Management and analysts continue to point to AI-linked demand as the primary growth driver; this supports longer-term structural growth but timing and cadence of customer ramps remain the key variables. Reuters
• Negative Sentiment: Shares fell after the print because some investors expected even stronger near-term guidance or commentary; headlines noted the stock “tumbled” despite an above-consensus outlook, signaling profit-taking and knee-jerk reaction to guidance nuance. Seeking Alpha
• Negative Sentiment: Valuation and recent run-up: KLAC has surged over the past year (~161% in some coverage) and trades at a high multiple (~50x 2026 EPS), increasing vulnerability to short-term profit-taking. Yahoo Finance

KLA Company Profile

KLA is a provider of process control and yield management solutions for the semiconductor and related microelectronics industries. The company designs and manufactures equipment, software and services used by chipmakers to analyze and control manufacturing processes, detect defects, measure critical dimensions and improve yield across wafer fabrication, photomask and packaging operations. KLA's offerings are aimed at enabling production of advanced logic, memory, and specialty devices at progressively smaller technology nodes and more complex package structures.

Its product portfolio includes optical and e-beam inspection systems, metrology tools for critical dimension and film measurement, mask and reticle inspection platforms, as well as enterprise software and data analytics that aggregate process data and drive automated process control.

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