Cantor Fitzgerald has raised its price objective for KLA Corporation (NASDAQ:KLAC) to $1,850.00 while maintaining an Overweight rating on the company, the semiconductor equipment manufacturer. The research firm continues to favor the stock and lists KLA as a "TOP PICK," recommending adding to positions on dips.
The firm notes that KLA shares have delivered a substantial one-year gain of 128.86%, with a market capitalization of $196.17 billion and a price-to-earnings ratio of 47.4, according to InvestingPro data.
Cantor Fitzgerald called attention to a divergence in wafer fabrication equipment (WFE) market sizing between KLA and competitor Lam Research. KLA provided a more conservative WFE outlook, estimating the market at roughly $123 billion, while Lam Research's estimate stands at $135 billion. Cantor attributed the variance to three factors cited in KLA's commentary:
- Timing differences for process control purchases;
- KLA's relatively greater exposure to lithography-related investments; and
- Lower exposure to NAND memory compared with peers.
Despite labeling KLA's guidance conservative, Cantor Fitzgerald suggested that the company may have room to report stronger results than guided over the course of the year, leaving scope for upward revisions to expectations.
Reflecting that view, Cantor raised its earnings-per-share estimates for KLA to $41 for fiscal 2026 and $55 for fiscal 2027. Those targets compare with consensus analyst estimates of $40.59 for 2026 and $48.86 for 2027, indicating Cantor's outlook is more optimistic than the street on 2027 in particular.
InvestingPro analysis included in the review shows KLA achieved revenue growth of 22.11% and currently trades above a calculated Fair Value, which the analysis notes may imply the stock is overvalued even though KLA's financial health appears strong.
Cantor also pointed out that lead times for KLA equipment have lengthened, now running about 9-12 months versus prior 7-9 months, and that order visibility extends into 2027. The firm said that an order placed today is likely not to be fulfilled until 2027, which Cantor interprets as a signal of robust demand.
The research house flagged KLA's upcoming Analyst Day on March 12 as the next potential catalyst for the shares and reiterated the recommendation to add to positions on any weakness.
In related company news, KLA reported second-quarter fiscal 2026 results that beat expectations on both the top and bottom lines. The company posted earnings per share of $8.85 compared with consensus of $8.80, and revenue of $3.3 billion versus a $3.25 billion forecast.
Jefferies also moved its price target on KLA to $1,850 from $1,500 while maintaining a Buy rating. However, Jefferies noted that KLA's WFE guidance for calendar year 2026 was below expectations, projecting high-single-digit to low-double-digit growth. That guidance stands in contrast to Lam Research's guide for a 23% increase in WFE, underscoring differing midterm demand expectations across equipment suppliers.
Taken together, the analyst updates, earnings beat and extended lead times highlight the dynamic position KLA occupies in the semiconductor equipment market and the continued investor focus on supply-demand timing, product exposure and near-term visibility.