KLA (KLAC) is expected to raise its five-year earnings and revenue targets through 2030 at its upcoming investor day, highlighting its "consistent" ability to outgrow the wafer fab equipment market, Oppenheimer said in a note Wednesday.

Analysts said the company is on track to surpass its 2026 targets and estimate that management could set a "conservative" 2025 to 2030 compound annual growth rate target of 11% to 13% in revenue and about 16% in earnings per share, compared with KLA's previous five-year targets of about 9% to 11% and around 15%, respectively.

At its investor day set for Thursday, KLA will likely try to shift investor focus away from short-term disruption and volatility due to geopolitical events and toward the company's core long-term strengths while providing a detailed analysis of AI's role in driving demand, Oppenheimer said.

The recent drop in KLA shares could be a buying opportunity, with the stock remaining a "must-own franchise" that benefits from AI-driven demand in a semiconductor capital equipment supercycle, offering significant long-term upside, according to the note.

Oppenheimer reiterated its outperform rating on the stock, with a price target of $1,800.

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