The Analyst Landscape: 17 Takes On KLA

Analysts' ratings for KLA KLAC over the last quarter vary from bullish to bearish, as provided by 17 analysts.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $638.53, along with a high estimate of $730.00 and a low estimate of $500.00. Observing a 12.52% increase, the current average has risen from the previous average price target of $567.50.

Interpreting Analyst Ratings: A Closer Look

The analysis of recent analyst actions sheds light on the perception of KLA by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to KLA. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of KLA compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of KLA's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into KLA's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on KLA analyst ratings.

Get to Know KLA Better

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.

Understanding the Numbers: KLA's Finances

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Challenges: KLA's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -16.66%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: KLA's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 23.43% net margin, the company effectively manages costs and achieves strong profitability.

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): KLA's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.1%, the company showcases efficient use of assets and strong financial health.

Debt Management: KLA's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.0, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

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