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Investment Thesis
I am rating KLA Corporation (KLAC) a Buy rating with a price target of $313. This represents a 40% upside potential from the current level of $222.
KLAC is not just another
I Am Buying KLA Corporation Ahead Of Earnings
Summary
- I rate KLA Corporation a Strong Buy with a $313 price target, implying 40% upside from $222.
- KLAC's 58% share in semiconductor process control gives it a dominant position in a part of semiconductor manufacturing that becomes more valuable as chips become harder to produce.
- My model estimates these drivers can increase revenue from about $14 billion in 2026 to roughly $18.3 billion by 2028 and lift split-adjusted EPS to about $5.3.
- I arrive at my price target by applying a FWD non-GAAP P/E of 59x to my 2028 split-adjusted EPS of $5.30.
- My biggest risk is valuation compression because the stock already trades at a large premium to the sector. Nevertheless, I believe KLA’s market leadership, expected EPS growth, margin expansion and free cash flow generation justify a premium valuation.
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About KLAC Stock
| Symbol | Last Price | % Chg |
|---|---|---|
| 207.68 | -2.38% | |
| Post | 207.55 | -0.06% |
Chart
Chart with 159 data points.
The chart has 1 X axis displaying Time. Data ranges from 2026-07-15 09:30:00 to 2026-07-20 15:50:00.
The chart has 1 Y axis displaying values. Data ranges from 204.6495 to 227.79.
End of interactive chart.
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