UPDATE: Deutsche Bank Upgrades KLA-Tencor Corporation to Hold on Limited Downside

Deutsche Bank upgraded KLA-Tencor Corporation (NASDAQ: KLAC) from Sell to Hold and raised the price target from $41.00 to $56.00.

Deutsche Bank said, "While concerns about 28nm bookings peak could continue to remain an overhang on shares, we expect strong balance sheet (~$1.8B net cash), dividend yield (~3% at current levels) and dominant position in process control to limit share price downside. Given the improving logic/20nm foundry spending outlook as well as upside to 2013/14 capex expectations, we upgrade shares to Hold, raise price target to $56."

KLA-Tencor Corporation closed at $51.97 on Thursday.

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