11:05 AM EDT, 06/20/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lift our target by $72 to $850, 27x our CY 2025 EPS view ($31.48), near peers and above KLAC's three-year average (~18x), supported by positive AI commentary from semiconductor market leaders, further setting the stage for a strong industry upcycle. We increase our FY 2024 EPS view by $0.05 to $23.41, FY 2025's by $0.26 to $28.82, and FY 2026's by $0.20 to $33.60, reflecting the better-than-expected commentary around KLAC's advanced packaging business. We now see ~$480M in advanced packaging sales in 2024 vs. our previous view of $400M, driven by accelerating demand for advanced packaging process control to support AI in the data center and at the edge, with momentum accelerating in subsequent years. We also see continued strength on the front end, where KLAC holds a dominant position, with broad strength across leading-edge logic and memory. Our downgrade reflects our view that KLAC's positive outlook is fully accounted for via shares' above-historical multiple following a ~15% rise in the past month.