UPDATE: J.P. Morgan Initiates Coverage on KLA-Tencor as Inflections in Semi Manufacturing Drive Capital Intensity
In a report published Monday, J.P. Morgan analyst Harlan Sur initiated coverage on KLA-Tencor Corporation (NASDAQ: KLAC) with an Overweight rating and $76.00 price target.
In the report, J.P. Morgan noted, “Initiating on KLAC at Overweight with Dec 2014 PT on $76. We believe KLAC will continue to dominate the process control/yield management segment of the market and will benefit from increasing yield and metrology challenges on next-generation process technologies. We expect KLAC to maintain its leading market share (75-80% market share and market leader in 19 out of 20 market served) by growing 4-5% faster than the overall industry. Our price target of $76 is based on average cross-cycle P/E, employing !17.0x our CY14E pro forma EPS of $4.51.”
KLA-Tencor Corporation closed on Friday at $61.68.
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