Wall Street closes at a record for the first time since end of January
Investing.com - Wolfe Research raised its price target on KLA Corporation (NASDAQ:KLAC) to $2,000 from $1,800 while maintaining an Outperform rating. The stock currently trades at $1,727, near its 52-week high of $1,735, reflecting a remarkable 165% return over the past year.
The firm cited updated guidance provided by KLA at its recent Investor Day. The company increased its calendar year 2026 outlook, guiding for high-teens percentage revenue growth, which implies revenue of approximately $15 billion versus consensus estimates of $14.6 billion. With a market cap of $226.4 billion and a P/E ratio of 50.33, InvestingPro data suggests the stock is currently overvalued relative to its Fair Value, though the company maintains a "GREAT" financial health score and is covered in a comprehensive Pro Research Report.
KLA expects quarter-over-quarter growth throughout the year with significant second-half 2026 growth versus the first half. For calendar year 2027, the company expects its revenue growth rate to be similar to or above calendar year 2026.
The company also updated its calendar year 2026 wafer fabrication equipment outlook slightly higher, now expecting $135 billion to $140 billion versus its prior expectation of $135 billion. The revised outlook aligns with Lam Research’s wafer fabrication equipment estimate.
KLA’s revised calendar year 2026 guidance implies approximately 20% year-over-year process control systems revenue growth, similar to Applied Materials’ 20%-plus calendar year 2026 systems growth forecast.
In other recent news, KLA Corporation held its analyst day, where it outlined ambitious targets for 2030, projecting revenue of $26 billion and earnings per share of $84. Wolfe Research responded by reiterating an Outperform rating with a price target of $1,800. KeyBanc also maintained its Sector Weight rating, highlighting KLA’s dominance in the Process Control market and noting that the 2030 targets exceed twice its 2025 projections. Bernstein SocGen Group raised its price target to $1,835, citing the company’s growth outlook in artificial intelligence. Cantor Fitzgerald reiterated an Overweight rating and set a price target of $1,850, emphasizing anticipated growth in wafer fabrication equipment share and advanced packaging as key drivers. These developments reflect KLA’s strategic focus on expanding its market share and technological capabilities.
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