UPDATE: J.P. Morgan Initiates Coverage on KLA-Tencor Corporation with Overweight Rating, $76 PT as Inflections in Semi Manufacturing Drive Capital Intensity, Growth Outlook

In a report published Monday, J.P. Morgan analyst Harlan Sur initiated coverage on

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.