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, reflecting a significant market share increase to about 8.0% in the global semiconductor wafer fabrication equipment segment, where KLA maintains a strong leadership position. The company anticipates notable growth in its advanced packaging business, with revenues expected to exceed $800 million, and overall revenues projected to rise by 11% in 2025, indicating a robust demand environment and operational efficiency. Additionally, KLA's gross margins are forecasted to improve to 62.0%, driven by a favorable sales mix, suggesting a positive outlook for profitability amidst expanding revenue streams.
Bears say
KLA's outlook appears negative primarily due to anticipated flat revenue and decreasing earnings per share for the upcoming fiscal quarter, which signals a significant decline in performance expectations compared to prior periods. Additionally, the company faced a $900 million decline in remaining performance obligations partially attributable to $450 million in domestic China-related debookings, highlighting vulnerabilities in its China market segment that is expected to experience a sharp decline in revenue contribution by CY25. Furthermore, projections for both 2025 and 2026 suggest that the wafer fabrication equipment market may contract significantly, with KLA's market share in process control potentially retreating to 6-7%, exacerbated by an unfavorable shift in WFE product mix.
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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