KLA's Latest Launch Gets Thumbs Up From Analyst; Micron's Deteriorating Fundamentals Leads To Re-Rating
- Wells Fargo analyst Joseph Quatrochi maintained KLA Corp (NASDAQ: KLAC) with an Overweight and raised the price target from $360 to $420.
- Post-market close on December 6, KLA launched the Axion T2000 metrology system, which leverages x-ray to measure complex vertical structures of advanced memory chips.
- KLA highlighted multiple systems in operation at leading memory customers for 3D NAND and DRAM.
- The company highlighted that the Axion T2000 could be used in R&D to achieve fast learning cycles, reducing dependence on the long lead time and destructive measurement methods and accelerating ramp cycle time.
- Quatrochi believes KLA should trade at a premium to Applied Materials, Inc (NASDAQ: AMAT) and Lam Research Corp (NASDAQ: LRCX), given a greater than 60% share of the addressable market and a higher gross and EBIT margin structure.
- Wells Fargo analyst Aaron Rakers maintained Micron Technology Inc (NASDAQ: MU) with an Overweight and lowered the price target from $75 to $70.
- Rakers would not be surprised to see MU shares trade lower ahead of the upcoming F1Q23 earnings release.
- Weakening fundamentals leave the analyst to now model non-GAAP EPS losses through F2023, down-cycle bottom shifting to mid and 2H2023 vs. prior 1H2023 expectation.
- Price Action: KLAC shares traded higher by 1.38% at $388.52 on the last check Wednesday.
Latest Ratings for KLAC
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Jan 2022 | Morgan Stanley | Maintains | Equal-Weight | |
| Jan 2022 | Needham | Maintains | Buy | |
| Jan 2022 | Susquehanna | Maintains | Positive |
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