Skip to Content

KLA Corp

KLAC: XNAS (USA)
View Stock Summary
Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
$693.00FthZpntzwksjn

KLA Earnings: Solid Quarter in Soft Market; We Raise Our Valuation on Higher Long-Term Forecasts

We raise our fair value estimate for wide-moat KLA to $510 per share, from $410, following the firm’s fiscal first-quarter results. Our fair value estimate raise comes largely due to upward revisions to our long-term growth expectations for both the wafer fabrication equipment market and KLA. We viewed KLA’s fiscal first-quarter results positively against a challenging market environment. WFE demand has been soft throughout 2023 behind weaker end-consumer demand and severe inventory digestion at memory chipmakers. While KLA is vulnerable to these market cycles, we see long-term growth drivers for the firm and are expecting results to recover in calendar 2024 and into 2025. We see shares as undervalued.

Free Trial of Morningstar Investor

Get our analysts’ objective, in-depth, and continuous investment coverage of KLAC so you can make buy / sell decisions free of market noise.

Start Free Trial

Sponsor Center