KLA-Tencor (KLAC) Upgraded at Zacks Investment Research

KLA-Tencor (NASDAQ:KLAC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Wednesday. The brokerage currently has a $117.00 price objective on the semiconductor company’s stock. Zacks Investment Research‘s price target indicates a potential upside of 14.92% from the company’s current price.

According to Zacks, “KLA offers complete yield management solution which includes hardware, software and services. The company continues to ride on strong demand environment, customer acceptance of key products, growth in China and operational efficiencies. The addition of new capacity by Wafer manufacturers and adoption of more complex architectures by IC customers are driving demand for the company’s new bare wafer products. KLA’s cost reduction initiatives and strong balance sheet are positives amid cyclical pressures. However, stiff competition and concentrated customer base increases execution risk. Also, ongoing memory pushout in the semiconductor industry poses a serious threat to KLA’s shipments. Further, the stock has underperformed the industry it belongs to on a year-to-date basis.”

KLAC has been the subject of a number of other reports. UBS Group assumed coverage on shares of KLA-Tencor in a report on Wednesday, April 4th. They set a “buy” rating and a $150.00 price target for the company. Bank of America assumed coverage on shares of KLA-Tencor in a report on Wednesday, March 21st. They set a “buy” rating and a $140.00 price target for the company. Argus lowered their price target on shares of KLA-Tencor from $135.00 to $115.98 and set a “buy” rating for the company in a report on Tuesday, March 20th. BidaskClub upgraded shares of KLA-Tencor from a “hold” rating to a “buy” rating in a report on Thursday, March 1st. Finally, Citigroup upped their price target on shares of KLA-Tencor from $122.00 to $127.00 and gave the company a “buy” rating in a report on Monday, April 30th. Five research analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. The stock has an average rating of “Buy” and a consensus target price of $131.93.

Shares of KLAC opened at $101.81 on Wednesday. The company has a market capitalization of $15.69 billion, a PE ratio of 17.14, a price-to-earnings-growth ratio of 0.78 and a beta of 1.52. The company has a debt-to-equity ratio of 1.80, a current ratio of 3.78 and a quick ratio of 3.07. KLA-Tencor has a fifty-two week low of $87.93 and a fifty-two week high of $123.96.

KLA-Tencor (NASDAQ:KLAC) last announced its quarterly earnings data on Thursday, April 26th. The semiconductor company reported $2.02 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.99 by $0.03. The firm had revenue of $1.02 billion during the quarter, compared to analyst estimates of $1 billion. KLA-Tencor had a net margin of 18.17% and a return on equity of 86.87%. The business’s quarterly revenue was up 11.7% on a year-over-year basis. During the same period in the previous year, the business posted $1.62 EPS. equities research analysts expect that KLA-Tencor will post 7.93 earnings per share for the current year.

KLA-Tencor declared that its Board of Directors has initiated a share buyback plan on Monday, March 19th that authorizes the company to buyback $2.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to purchase shares of its stock through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Institutional investors have recently modified their holdings of the business. Financial Gravity Wealth Inc. purchased a new position in KLA-Tencor during the 1st quarter valued at $106,000. Institutional & Family Asset Management LLC purchased a new position in KLA-Tencor during the 1st quarter valued at $107,000. Silvant Capital Management LLC purchased a new position in KLA-Tencor during the 1st quarter valued at $123,000. First Mercantile Trust Co. increased its position in KLA-Tencor by 121.7% during the 1st quarter. First Mercantile Trust Co. now owns 1,299 shares of the semiconductor company’s stock valued at $142,000 after purchasing an additional 713 shares during the period. Finally, Centaurus Financial Inc. purchased a new position in KLA-Tencor during the 1st quarter valued at $176,000. 90.98% of the stock is currently owned by institutional investors and hedge funds.

KLA-Tencor Company Profile

KLA-Tencor Corporation designs, manufactures, and markets process control and yield management solutions for the semiconductor and related nano-electronics industries worldwide. It offers chip manufacturing products, such as front-end defect inspection tools, defect review systems, advanced packaging process control systems, metrology solutions, in-situ process monitoring products, and lithography software; wafer manufacturing products comprising wafer manufacturing products comprising surface and defect inspection, wafer geometry and nanotopography metrology, and data management; and reticle manufacturing products, such as defect inspection and pattern placement metrology products.

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