KLA Corp. downgraded to Neutral on valuation at Susquehanna

Susquehanna downgraded KLA Corp. to Neutral from Positive with a price target of $675, up from $640. The analyst increased estimates and the price target to reflect a bottoming in quarterly earnings by the March quarter, followed by a recovery. However, the updated price target “already reflects a steep recovery,” the analyst tells investors in a research note. The firm also sees minimal upside to estimates given KLA’s 2026 earnings per share target of $38. As such, the stock’s current valuation “leaves us with no choice but to downgrade the shares,” writes Susquehanna.