UPDATE: Susquehanna International Group Downgrades KLA-Tencor on Updated Industry View

In a report published Monday, Susquehanna International Group analyst Mehdi Hosseini downgraded the rating on KLA-Tencor (NASDAQ: KLAC) from Neutral to Negative, and lowered the price target from $47.00 to $44.00.

In the report, Susquehanna International Group noted, “Our updated industry view suggests WFE spending in CY14 will increase by 8-10%, at best. We are therefore lowering estimates/price target for KLAC and downgrade the shares from Neutral to Negative. Our revised CY14 EPS of $4.30 is down from prior $4.53 and compares to the current consensus estimate of $4.57. Our price target has also been lowered from $47 to $44 to reflect the lower earnings in CY14. Near term, we do believe bookings in the December quarter are tracking to the high end of the guide range of up 1-20% Q/Q, though we do believe bookings will see a sharp decline into the March quarter as the weakness in TSM-related bookings will not be offset by memory/other foundry-related bookings. We therefore encourage investors to take profit as we now expect significant downside risk to expectations.”

KLA-Tencor closed on Friday at $64.80.