Breaking Down KLA: 8 Analysts Share Their Views

Providing a diverse range of perspectives from bullish to bearish, 8 analysts have published ratings on KLA KLAC in the last three months.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $755.25, a high estimate of $850.00, and a low estimate of $655.00. Marking an increase of 0.27%, the current average surpasses the previous average price target of $753.25.

Investigating Analyst Ratings: An Elaborate Study

The standing of KLA among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to KLA. This information offers a snapshot of how analysts perceive 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 predict movements in price targets, offering estimates for KLA's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into KLA's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with 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.

A Deep Dive into KLA's Financials

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Over the 3 months period, KLA showcased positive performance, achieving a revenue growth rate of 18.55% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 33.29%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): KLA's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 27.3%, 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 6.08%, the company showcases effective utilization of assets.

Debt Management: KLA's debt-to-equity ratio stands notably higher than the industry average, reaching 1.92. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: What Are They?

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.

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