Analyst Expectations For KLA's Future

In the last three months, 14 analysts have published ratings on KLA KLAC, offering a diverse range of perspectives from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for KLA, revealing an average target of $873.79, a high estimate of $980.00, and a low estimate of $680.00. Surpassing the previous average price target of $810.71, the current average has increased by 7.78%.

Interpreting Analyst Ratings: A Closer Look

The standing of KLA among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines 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: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect 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.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of KLA's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on KLA analyst ratings.

All You Need to Know 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's Economic Impact: An Analysis

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Over the 3 months period, KLA showcased positive performance, achieving a revenue growth rate of 9.07% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: KLA's net margin is impressive, surpassing industry averages. With a net margin of 32.56%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): KLA's ROE excels beyond industry benchmarks, reaching 25.88%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): KLA's ROA stands out, surpassing industry averages. With an impressive ROA of 5.5%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: KLA's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.02, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: Simplified

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

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.