© Reuters. KLA Corp (KLAC) fell as KeyBanc downgraded due to lack of catalysts in the near term
Shares of KLA Corporation (NASDAQ::) fell 2% on Friday after KeyBanc analysts downgraded the rating to “sector weight” from “overweight.”
The ratings move comes after the stock surpassed KeyBanc’s previous price target of $468. Analysts cite a lack of catalysts and a rich valuation as the main reasons behind the downgrade.
“From a fundamental standpoint, we believe the downturn is underway, but it is not yet clear that a positive turn is at hand. While the timing of the turn remains uncertain, if history holds it is only a matter of time, and we expect to hear more about both the course and industry conditions at next week’s SEMICON West conference,” the analysts wrote in a note.
“While we have a positive view of the eventual recovery in the cycle and are increasing our estimates for fiscal ’25 down the street, we don’t see the underlying catalyst or NT valuation support necessary to increase our price target from here.”
Shares of KLAC are up 22.4% year-to-date.
