KLA (NASDAQ:KLAC) Stock Price Expected to Rise, BNP Paribas Exane Analyst Says

Key Points

• BNP Paribas Exane raised its price target on KLA to $1,700 but kept a neutral rating, a level that implies roughly a 2.9% downside from the prior close.
• Multiple brokers have lifted targets and ratings—MarketBeat shows a consensus of Moderate Buy with a $1,788.52 average price target—indicating broad analyst optimism about AI-driven chip demand.
• KLA beat Q3 EPS and revenue estimates, increased its dividend and authorized a $7 billion share buyback, yet it trades at a high valuation (~50x 2026 EPS) after a large run-up, making it vulnerable to short-term profit-taking.

KLA (NASDAQ:KLAC - Get Free Report) had its price objective increased by stock analysts at BNP Paribas Exane from $1,550.00 to $1,700.00 in a research note issued to investors on Thursday,MarketScreener reports. The brokerage presently has a "neutral" rating on the semiconductor company's stock. BNP Paribas Exane's price objective suggests a potential downside of 2.88% from the stock's previous close.

A number of other analysts have also recently issued reports on the company. Barclays boosted their price objective on KLA from $1,595.00 to $1,700.00 and gave the company an "overweight" rating in a research report on Friday, January 30th. Evercore lifted their price target on shares of KLA from $1,350.00 to $1,700.00 and gave the stock an "outperform" rating in a research note on Monday, January 26th. Stifel Nicolaus boosted their price target on shares of KLA from $1,600.00 to $1,700.00 and gave the company a "buy" rating in a report on Friday, January 30th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $1,750.00 price objective on shares of KLA in a report on Thursday. Finally, Cantor Fitzgerald lifted their target price on shares of KLA from $1,850.00 to $2,000.00 and gave the company an "overweight" rating in a research report on Monday, March 30th. Twenty equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $1,788.52.

KLA Stock Performance

Shares of KLAC stock opened at $1,750.35 on Thursday. The stock's 50-day moving average is $1,586.36 and its two-hundred day moving average is $1,391.30. 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 fifty-two week low of $674.76 and a fifty-two week high of $1,939.36. The firm has a market cap of $229.43 billion, a P/E ratio of 49.54, a PEG ratio of 3.43 and a beta of 1.44.

KLA (NASDAQ:KLAC - Get Free Report) last announced its quarterly earnings data on Wednesday, April 29th. The semiconductor company reported $9.40 EPS for the quarter, beating analysts' consensus estimates of $9.17 by $0.23. The business had revenue of $3.42 billion during 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 firm'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 earned $8.41 earnings per share. KLA has set its Q4 2026 guidance at 8.870-10.870 EPS. Analysts predict that KLA will post 36.64 earnings per share for the current fiscal year.

KLA declared that its board has authorized a stock repurchase program on Thursday, March 12th that authorizes the company to repurchase $7.00 billion in shares. This repurchase authorization authorizes the semiconductor company to buy up to 3.7% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's board of directors believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of KLAC. Close Asset Management Ltd acquired a new stake in shares of KLA in the 3rd quarter valued at $133,209,000. Achmea Investment Management B.V. lifted its stake in shares of KLA by 6.2% during the third quarter. Achmea Investment Management B.V. now owns 104,507 shares of the semiconductor company's stock valued at $112,721,000 after acquiring an additional 6,109 shares during the period. BI Asset Management Fondsmaeglerselskab A S boosted its holdings in KLA by 5.8% in the third quarter. BI Asset Management Fondsmaeglerselskab A S now owns 101,382 shares of the semiconductor company's stock valued at $109,351,000 after acquiring an additional 5,586 shares during the last quarter. Cornerstone Investment Partners LLC boosted its holdings in KLA by 0.4% in the fourth quarter. Cornerstone Investment Partners LLC now owns 96,846 shares of the semiconductor company's stock valued at $117,676,000 after acquiring an additional 374 shares during the last quarter. Finally, PFA Pension Forsikringsaktieselskab acquired a new stake in KLA in the fourth quarter worth about $119,618,000. 86.65% of the stock is currently owned by institutional investors.

KLA News Roundup

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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