Morgan Stanley Downgrades KLA-Tencor Due to High Valuation Despite Strong Fundamentals and Raised Earnings Outlook

Stock News

Oct 10

Morgan Stanley has downgraded semiconductor equipment manufacturer KLA-Tencor (KLAC.US) from "overweight" to "hold" while simultaneously raising its target price from $928 to $1,093. The downgrade stems from concerns over the stock's elevated valuation, which currently trades at a 30% premium.

Despite the rating cut, Morgan Stanley reinforced its confidence in KLA-Tencor's robust underlying business fundamentals, driven by solid demand from Taiwan Semiconductor Manufacturing Company, DRAM producers, and the advanced packaging sector. Reflecting this optimism, the investment bank increased its fiscal 2026 earnings per share projection for KLA-Tencor from $37.11 to $39.03.

Morgan Stanley maintains a positive outlook on the company's prospects, anticipating that wafer fabrication equipment (WFE) revenue will expand by 10% to reach $128 billion, marking an upward revision from its previous estimate of 5% growth.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

{"basename":"","ssrTDKData":{"titleTemplate":"%s - Tiger Brokers","title":"Tiger Brokers | Global Stocks, Options & Futures Trading App","description":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","keywords":"tiger brokers,tiger trade,tiger brokers singapore,broker online,stock trading in singapore,share trading singapore,brokerage firm singapore,trading app,stock broker singapore,stock trading platforms,trading account","social":{"ogDescription":"Tiger Brokers, one-stop investment in US stocks, SGX stocks, HK stocks, A-shares & other global assets. One of the best stock trading platforms in Singapore.","ogImage":"https://c1.itigergrowtha.com/portal5/static/media/og-logo.be62fbe1.png","ogUrl":"https://www.itiger.com/news/1109001410"},"companyName":"Tiger Brokers"},"pageData":{"isMobile":false,"isTiger":false,"isTTM":true,"region":"SGP","license":"TBSG","edition":"fundamental"},"isCrawlerRequest":true,"__swrFallback__":{"@#url:\"https://stock-news.skytigris.cn/v3/news\",params:#id:\"1109001410\",edition:\"fundamental\",auth_exemption:1,,,undefined,":{"share":"https://ttm.financial/m/news/1109001410?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2025-10-10 15:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1109001410","market":"sh","top_or_hot":-1,"title":"Morgan Stanley Downgrades KLA-Tencor Due to High Valuation Despite Strong Fundamentals and Raised Earnings Outlook","media":"Stock News","content":"<p>Morgan Stanley has downgraded semiconductor equipment manufacturer KLA-Tencor (KLAC.US) from \"overweight\" to \"hold\" while simultaneously raising its target price from $928 to $1,093. The downgrade stems from concerns over the stock's elevated valuation, which currently trades at a 30% premium.</p>\n<p>Despite the rating cut, Morgan Stanley reinforced its confidence in KLA-Tencor's robust underlying business fundamentals, driven by solid demand from Taiwan Semiconductor Manufacturing Company, DRAM producers, and the advanced packaging sector. Reflecting this optimism, the investment bank increased its fiscal 2026 earnings per share projection for KLA-Tencor from $37.11 to $39.03.</p>\n<p>Morgan Stanley maintains a positive outlook on the company's prospects, anticipating that wafer fabrication equipment (WFE) revenue will expand by 10% to reach $128 billion, marking an upward revision from its previous estimate of 5% growth.</p>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Morgan Stanley Downgrades KLA-Tencor Due to High Valuation Despite Strong Fundamentals and Raised Earnings Outlook</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nMorgan Stanley Downgrades KLA-Tencor Due to High Valuation Despite Strong Fundamentals and Raised Earnings Outlook\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036600163\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/b3bf6d02ad1a6e9e7377eebbb162346a);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Stock News </p>\n<p class=\"h-time\">2025-10-10 15:00</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>Morgan Stanley has downgraded semiconductor equipment manufacturer KLA-Tencor (KLAC.US) from \"overweight\" to \"hold\" while simultaneously raising its target price from $928 to $1,093. The downgrade stems from concerns over the stock's elevated valuation, which currently trades at a 30% premium.</p>\n<p>Despite the rating cut, Morgan Stanley reinforced its confidence in KLA-Tencor's robust underlying business fundamentals, driven by solid demand from Taiwan Semiconductor Manufacturing Company, DRAM producers, and the advanced packaging sector. Reflecting this optimism, the investment bank increased its fiscal 2026 earnings per share projection for KLA-Tencor from $37.11 to $39.03.</p>\n<p>Morgan Stanley maintains a positive outlook on the company's prospects, anticipating that wafer fabrication equipment (WFE) revenue will expand by 10% to reach $128 billion, marking an upward revision from its previous estimate of 5% growth.</p>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU1923623000.USD","symbol_name":"Natixis Thematics AI & Robotics Fund R/A USD","start_time":0,"source_url":"","article_id":"1109001410","we_media_id":"1036600163","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1109001410","pubTimestamp":1760079628,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Stock News","introduction":"Global Stock News First-Time Broadcast","home_visible":1,"id":"1036600163","head_image":"https://community-static.tradeup.com/news/b3bf6d02ad1a6e9e7377eebbb162346a"},"summary":"Morgan Stanley has downgraded semiconductor equipment manufacturer KLA-Tencor (KLAC.US) from \"overweight\" to \"hold\" while simultaneously raising its target price from $928 to $1,093. The downgrade...","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU1923623000.USD":"Natixis Thematics AI & Robotics Fund R/A USD","BK4533":"AQR资本管理(全球第二大对冲基金)","BK4585":"ETF&股票定投概念","LU2089985449.USD":"MANULIFE GF GLOBAL SEMICONDUCTOR OPPORTUNITIES \"AA\" (USD) ACC","LU2360032135.SGD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (SGDHDG) INC","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","LU0274383776.USD":"MANULIFE GF US SMALL CAP EQUITY \"AA\" (USD) INC","LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","LU1951198990.SGD":"Natixis Thematics AI & Robotics Fund H-R/A SGD-H","LU2125154778.USD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (USD) INC","IE00BQXX3D17.EUR":"GUINNESS GLOBAL INNOVATORS \"C\" (EUR) ACC","BK4588":"碎股","IE00BQXX3C00.GBP":"GUINNESS GLOBAL INNOVATORS \"C\" (GBP) ACC","BK4147":"半导体设备","LU1974910355.USD":"Allianz Thematica Cl AMg DIS USD","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","IE00BQXX3F31.USD":"GUINNESS GLOBAL INNOVATORS \"C\" (USD) ACC","BK4519":"光伏太阳能","LU2125154935.USD":"ALLSPRING (LUX) WF GLOBAL EQUITY ENHANCED INCOME \"I\" (USD) INC","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","LU1861215975.USD":"贝莱德新一代科技基金 A2","BK4581":"高盛持仓","BK4543":"AI","LU2360107168.USD":"BGF NEXT GENERATION TECHNOLOGY \"A4\" (USD) INC","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","KLAC":"科磊","LU2290526834.HKD":"BGF NEXT GENERATION TECHNOLOGY \"A2\" (HKDHDG) ACC","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU1917777945.USD":"安联专题基金Cl AT Acc","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","LU2023250843.SGD":"Allianz Thematica Cl AT Acc H2-SGD"},"translate_title":"尽管基本面强劲且盈利前景上调，摩根士丹利仍因估值较高而下调KLA-Tencor评级","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"KLAC":1},"content_text":"Morgan Stanley has downgraded semiconductor equipment manufacturer KLA-Tencor (KLAC.US) from \"overweight\" to \"hold\" while simultaneously raising its target price from $928 to $1,093. The downgrade stems from concerns over the stock's elevated valuation, which currently trades at a 30% premium.\nDespite the rating cut, Morgan Stanley reinforced its confidence in KLA-Tencor's robust underlying business fundamentals, driven by solid demand from Taiwan Semiconductor Manufacturing Company, DRAM producers, and the advanced packaging sector. Reflecting this optimism, the investment bank increased its fiscal 2026 earnings per share projection for KLA-Tencor from $37.11 to $39.03.\nMorgan Stanley maintains a positive outlook on the company's prospects, anticipating that wafer fabrication equipment (WFE) revenue will expand by 10% to reach $128 billion, marking an upward revision from its previous estimate of 5% growth.","kind":"news","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}