Deutsche Bank Starts KLA-Tencor (KLAC) at Hold

Deutsche Bank initiated coverage on KLA-Tencor (NASDAQ: KLAC) with a Hold rating and a price target of $68.00.

Analyst Sidney Ho said, "KLAC is a well-run company with a strong market share in process control of the WFE market. It generates industry-high margins and cash flow, and places high priority on shareholder returns. KLAC should benefit from a continued increase in WFE spending over the next 2-3 years, driven by multiple technology inflections. Recently, KLAC raised the bar for capital allocation through a leveraged recapitalization and a special dividend. These shareholderfriendly actions support the re-rating of KLAC above the 5-year average P/E excash of 11x. However, we believe the shares trading at 17x our CY15E EPS exspecial dividend are fairly valued with limited EPS leverage."

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

Shares of KLA-Tencor closed at $70.66 yesterday.

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