KLA (NASDAQ:KLAC) Price Target Raised to $1,550.00

Key Points

• Goldman Sachs raised its price target on KLA to $1,550 while keeping a "neutral" rating, but the broader analyst consensus is higher with a consensus target of $1,788.52 and an average "Moderate Buy" (20 Buys, 10 Holds).
• KLA beat Q3 expectations (EPS $9.40 vs. $9.17; revenue $3.42B vs. $3.37B) and guided Q4 EPS to $8.87–$10.87, yet shares fell amid profit-taking as the stock trades at a rich ~50x 2026 EPS after a large run-up.
• Management boosted shareholder returns by raising the quarterly dividend to $2.30 and authorizing a $7.0 billion share repurchase (about 3.7% of shares), underscoring strong cash flow and board confidence.

KLA (NASDAQ:KLAC - Get Free Report) had its target price raised by investment analysts at The Goldman Sachs Group from $1,505.00 to $1,550.00 in a report released on Thursday,MarketScreener reports. The firm presently has a "neutral" rating on the semiconductor company's stock. The Goldman Sachs Group's target price would suggest a potential downside of 11.45% from the stock's previous close.

Other research analysts also recently issued research reports about the company. Susquehanna increased their target price on KLA from $1,600.00 to $1,700.00 and gave the stock a "neutral" rating in a report on Thursday. Deutsche Bank Aktiengesellschaft restated a "hold" rating and set a $1,750.00 price objective on shares of KLA in a research note on Thursday. Royal Bank Of Canada lifted their price objective on shares of KLA from $1,600.00 to $1,700.00 and gave the stock a "sector perform" rating in a report on Thursday. TD Cowen increased their target price on shares of KLA from $1,800.00 to $2,000.00 and gave the stock a "buy" rating in a report on Thursday. Finally, Weiss Ratings restated a "buy (b)" rating on shares of KLA in a research report on Tuesday, April 21st. Twenty analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, KLA presently has an average rating of "Moderate Buy" and a consensus target price of $1,788.52.

KLA Trading Down 3.6%

NASDAQ KLAC opened at $1,750.35 on Thursday. The company has a market capitalization of $229.43 billion, a price-to-earnings ratio of 49.54, a price-to-earnings-growth ratio of 3.43 and a beta of 1.44. The company has a debt-to-equity ratio of 1.08, a current ratio of 2.83 and a quick ratio of 2.00. KLA has a 12 month low of $674.76 and a 12 month high of $1,939.36. The company's fifty day moving average price is $1,586.36 and its two-hundred day moving average price is $1,391.30.

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

KLA announced that its board has approved a stock repurchase plan on Thursday, March 12th that allows the company to repurchase $7.00 billion in outstanding shares. This repurchase authorization allows the semiconductor company to repurchase up to 3.7% of its stock through open market purchases. Stock repurchase plans are often an indication that the company's board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Motco grew its holdings in shares of KLA by 1.8% in the 4th quarter. Motco now owns 405 shares of the semiconductor company's stock worth $492,000 after acquiring an additional 7 shares during the last quarter. Nemes Rush Group LLC lifted its holdings in shares of KLA by 17.1% during the fourth quarter. Nemes Rush Group LLC now owns 48 shares of the semiconductor company's stock valued at $58,000 after purchasing an additional 7 shares during the last quarter. SouthState Bank Corp boosted its position in shares of KLA by 6.7% in the 4th quarter. SouthState Bank Corp now owns 111 shares of the semiconductor company's stock valued at $135,000 after purchasing an additional 7 shares during the period. West Michigan Advisors LLC increased its stake in KLA by 2.7% in the 4th quarter. West Michigan Advisors LLC now owns 305 shares of the semiconductor company's stock worth $371,000 after purchasing an additional 8 shares in the last quarter. Finally, Kingswood Wealth Advisors LLC raised its holdings in KLA by 3.4% during the 3rd quarter. Kingswood Wealth Advisors LLC now owns 271 shares of the semiconductor company's stock worth $292,000 after buying an additional 9 shares during the period. Institutional investors own 86.65% of the company's stock.

Key KLA News

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

About KLA

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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