
KLA-Tencor (KLAC) Stock Forecast & Price Target
KLA-Tencor (KLAC) Analyst Ratings
Bulls say
KLA's financial outlook is bolstered by projected tool revenue growth to approximately $8.4 billion in CY25, capturing an 8% share of the overall $105 billion wafer fabrication equipment market. The company's advanced packaging business is expected to experience a remarkable growth rate of around 60%, advancing to over $800 million in revenue for CY25, indicating strong market demand. Additionally, the firm anticipates an 11% overall revenue growth in 2025, alongside an impressive earnings per share forecast of $32.00, surpassing consensus expectations, aided by improved gross margins of 62.0%.
Bears say
KLA's financial outlook has been negatively impacted by anticipated stagnation in revenue and a slight decline in EPS for Q3 FY2025, with further concerns regarding domestic China spending and potential weaknesses in the SPTS segment. The company's remaining performance obligations (RPO) have declined by $900 million, largely due to a significant drop in domestic China-related orders, indicating challenges in sustaining revenue from this critical market. Furthermore, projections suggest that KLA’s China revenue contribution will decrease sharply from 41% in FY2024 to 29% in FY2025, intensifying market share losses and a deteriorating WFE market mix, which may further pressure earnings going forward.
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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