
KLA-Tencor (KLAC) Stock Forecast & Price Target
KLA-Tencor (KLAC) Analyst Ratings
Bulls say
KLA is projected to achieve tool revenue of approximately $8.4 billion in CY25, indicating a growth in its market share within the semiconductor wafer fabrication equipment (WFE) sector to around 8.0%. The company is expected to significantly expand its advanced packaging business, forecasting a growth rate of 60% to over $800 million in CY25, contributing to an overall revenue growth of 10.5% year-over-year. Additionally, KLA’s gross margins are anticipated to rise to 62.0%, reflecting an improved product mix that surpasses previous expectations and underscoring the company’s overall financial strength.
Bears say
KLA is facing a challenging financial outlook as guidance for F3Q indicates flat revenue and a slight decrease in EPS, with expectations of a more significant quarter-over-quarter decline. The company’s RPO has experienced a substantial $900 million drop, attributed primarily to approximately $450 million in debookings related to domestic China, coupled with expectations of a sharp fall in China revenue contribution from 41% in CY24 to 29% in CY25, amidst concerns over export controls. Furthermore, projections suggest potential declines in the WFE market below $100 billion and a decrease in KLA's market share in the process control segment to 6-7% by 2026, raising doubts about the company’s growth trajectory.
This aggregate rating is based on analysts' research of KLA-Tencor and is not a guaranteed prediction by Public.com or investment advice.
KLA-Tencor (KLAC) Analyst Forecast & Price Prediction
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