As reported earlier, Evercore ISI analyst CJ Muse dowgraded KLA-Tencor to In Line from Outperform and also lowered his price target to $100 from $140. The analyst says his recent data suggest that WFE orders are tracking to fall about 10% to $45B in FY19, but the decline could be as high as 20% if memory spending does not recover from the DRAM inventory glut-driven slump. Muse also notes that the recent shipment cut data indicate that KLA-Tencor is poised for the "worst peak to tough decline" of about 50%, which could lead to "incremental disappointment" in the current earnings season.

Stifel raised the firm's price target on KLA Corp. to $760 from $685 and keeps a Buy rating on the shares. The firm remains upbeat on the initial areas of pickup - HBM and advanced packaging - and expects to see incremental evidence of this broadening, the analyst tells investors in a semiconductor capital equipment group preview note. With utilization in advanced foundry/DRAM nodes tight and tightening and expected upward pressure on initial 2024 capex forecasts, the firm sees the stage being set for orders picking up in the second half of 2024, the analyst added.