UPDATE: Deutsche Bank Raises Target to $45 on KLA-Tencor

Deutsche Bank maintains its Hold rating on KLA-Tencor

and raises its price target to $45 from $42 on relatively long-term outlook and valuation. Deutsche Bank notes, "While we are longer-term believers in rising process control intensity at 2x and 1x nodes, we believe foundry bookings are running well above normalized bookings run-rate and see increasing risks to current bookings momentum into 2H12. Tech leveraged names (KLAC, ASML) have lagged capacity leveraged names (NVLS, LRCX, AMAT) year-to-date and given the valuation premium (KLAC trading at 2.9x book vs 1.8-2.2x for peers, 2.6x EV/S vs 1.3-1.5x for peers), we could see this trend continue." KLAC closed at $50.26 a share on Thursday.