Stifel analyst Patrick Ho raised his estimates for KLA-Tencor to account for the recent close of the Orbotech deal and increased his price target on KLA shares to $130 from $124, stating that he believes the deal is immediately accretive and he sees potential for additional cost synergy savings. The analyst, who thinks the deal provides diversification and new growth avenues, keeps a Buy rating on KLA-Tencor shares.

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.