Expert Outlook: KLA Through The Eyes Of 16 Analysts

KLA KLAC has been analyzed by 16 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have recently evaluated KLA and provided 12-month price targets. The average target is $634.69, accompanied by a high estimate of $730.00 and a low estimate of $500.00. This upward trend is apparent, with the current average reflecting a 11.84% increase from the previous average price target of $567.50.

Analyzing Analyst Ratings: A Detailed Breakdown

A comprehensive examination of how financial experts perceive KLA is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to KLA. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of KLA compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for KLA's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

To gain a panoramic view of KLA's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious 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.

KLA: Financial Performance Dissected

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: KLA's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately -16.66%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower 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 23.43%, 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 19.31%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.1%, the company showcases effective utilization of assets.

Debt Management: KLA's debt-to-equity ratio stands notably higher than the industry average, reaching 2.0. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: Simplified

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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.