Oppenheimer Maintains Outperform on KLA-Tencor

Oppenheimer is out with its report today on KLA-Tencor KLAC, maintaining Outperform. In its report, Oppenheimer writes, "Process complexity is the key driver for process control in semiconductor manufacturing in regards to wafer, chip and reticle sub-segments. KLA-Tencor is the leader with $1 of $2 in process control spend ending up in its hands. In the semicap world, if we do not take into account the electronic design automation companies, KLA-Tencor possibly enjoys one of the best gross (61% in FY11E) and operating margins (37% in FY11E) in the industry. We think that stock trades cheaply at 9x the consensus CY12 EPS estimate without taking into account the net cash on its books." Oppenheimer maintains a $50 PT on KLAC. Shares of KLAC closed Tuesday at $36.64, down 0.65% from Monday's close.