In the latest quarter, 11 analysts provided ratings for KLA (NASDAQ:KLAC), showcasing a mix of bullish and bearish perspectives.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 3 | 3 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 1 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 1 | 0 | 0 |
| 3M Ago | 3 | 1 | 2 | 1 | 0 |
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $786.64, a high estimate of $980.00, and a low estimate of $630.00. Surpassing the previous average price target of $698.36, the current average has increased by 12.64%.
Decoding Analyst Ratings: A Detailed Look
The analysis of recent analyst actions sheds light on the perception of KLA by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Atif Malik | Citigroup | Raises | Buy | $980.00 | $760.00 |
| Joseph Quatrochi | Wells Fargo | Raises | Overweight | $950.00 | $860.00 |
| Srini Pajjuri | Raymond James | Raises | Outperform | $875.00 | $750.00 |
| Tom O'Malley | Barclays | Raises | Equal-Weight | $765.00 | $630.00 |
| Blayne Curtis | Jefferies | Raises | Buy | $820.00 | $740.00 |
| Atif Malik | Citigroup | Raises | Buy | $760.00 | $725.00 |
| Krish Sankar | TD Cowen | Raises | Hold | $700.00 | $650.00 |
| Srini Pajjuri | Raymond James | Raises | Outperform | $750.00 | $625.00 |
| Joseph Moore | Morgan Stanley | Raises | Equal-Weight | $698.00 | $692.00 |
| Tom O'Malley | Barclays | Raises | Underweight | $630.00 | $550.00 |
| Atif Malik | Citigroup | Raises | Buy | $725.00 | $700.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to KLA. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of KLA compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of KLA's stock. This analysis reveals shifts in analysts' expectations over time.
For valuable insights into KLA's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on KLA analyst ratings.
About KLA
KLA is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segment of semiconductor process control, wherein machines inspect semiconductor wafers during research and development and manufacturing for defects and verify precise measurements. In this section of the market, KLA holds a majority share. It also has a small exposure to the etch and deposition segments of the WFE market. It counts as top customers the largest chipmakers in the world, including TSMC and Samsung.
Key Indicators: KLA's Financial Health
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
Negative Revenue Trend: Examining KLA's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -2.99% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: KLA's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 25.49%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): KLA's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 19.6%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): KLA's ROA stands out, surpassing industry averages. With an impressive ROA of 4.11%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: KLA's debt-to-equity ratio surpasses industry norms, standing at 2.2. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
How Are Analyst Ratings Determined?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.