KLA Corp KLAC is poised for continued WFE (wafer front end) outperformance “driven by accelerating leading edge Foundry / Logic spend,” according to Wells Fargo.
The KLA Analyst: Joe Quatrochi upgraded the rating for KLA Corp from Equal Weight to Overweight, while raising the price target from $360 to $500.
The KLA Thesis: Foundry and logic spend is likely to increase with capital intensity remaining elevated and as Intel Corporation INTC targets to regain process leadership over Taiwan Semiconductor and Samsung by 2025, Quatrochi said in the upgrade note.
“With KLA’s business / process control significantly driven by long-term development plans, we think the significant increase in company’s 10-Q/K disclosed remaining performance obligation balance (RPO) supports upside to forward estimates,” the analyst wrote.
He named KLA Corp as “our No. 1 top pick for 2022.”
KLAC Price Action: Shares of KLA had risen by 5.23% to $405.64 at the time of publication Tuesday.
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