UBS analyst Timothy Arcuri raised his price target on KLA-Tencor to $140 and kept his Buy rating, saying that while the management's outlook is not "awe-inspiring" in terms of gross margins and higher operating expenses, he sees the guidance as "very conservative." The analyst believes that the overall consensus for 2020 revenue is "still too low" since the "process control intensity" was flat in 2018 despite the strong memory investment last year, and he expects KLA-Tencor to gain WFE market share.

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.