UPDATE: Stifel Upgrades KLA Corporation (KLAC) to Buy

Stifel analyst Patrick Ho upgraded KLA Corporation (NASDAQ: KLAC) from Hold to Buy with a price target of $211.00.

The analyst comments "We are upgrading shares of KLA Corp. to a Buy rating (from Hold), while maintaining our target price of $211, as our FY/CY21 estimates remain unchanged. We believe the recent weakness in the group (that can be attributed to several factors including concerns on worsening China trade tensions and potential memory capex cuts) has brought shares to more attractive valuations, which support our more favorable rating. Fundamentally, while we still have concerns on near term memory capex plans, we are incrementally more positive on 2021 wafer fab equipment (WFE) spending and believe it will be up from 2020 levels. With KLA’s strong exposure to the foundry/logic segment (which we are now forecasting to be up y-o-y), there is the potential for upside to our current estimates. With these factors in mind, we believe a more favorable rating is warranted and they support our upgrade in the name."

For an analyst ratings summary and ratings history on KLA Corporation click here. For more ratings news on KLA Corporation click here.

Shares of KLA Corporation closed at $178.96 yesterday.

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