Needham Remained Bullish On KLA Corp Post Investor Day - Read Why - KLA (NASDAQ:KLAC)

Needham hailed KLA Corp's KLAC 2022 Investor Day in NYC in a note titled "Investor Day Reveals New 2026 Model Targeting Revenue of $14bn and EPS of $38."
Overall, it was a successful event that provided investors with a fresh LT outlook on KLA's strategy and earnings power while providing hope during this market downturn.
Despite the ongoing macro issues, Needham believed in KLA's commentary to continue outperforming WFE and gain additional share in semiconductor process control (PC).
The outlook should provide some solace to investors during this uncertain time. Needham assured.
Needham saw that as the semiconductor process control leader, KLA has a wide competitive moat in its core market.
KLA enjoys the WFE industry's highest gross margin and consistently returns capital to investors through dividends and share buybacks.
Its service business has been a role model for the industry, and Needham saw it would continue to drive KLA's growth and profitability.
KLA is a clear beneficiary of foundry/logic spending strength and EUV proliferation in 2021-2022.
Needham believes KLA has a high-quality business, proving it can outperform peers in industry upturns and downturns.
As such, Needham saw the potential for KLA to deliver strong share price performance despite the market sentiment around the WFE cycle and upgraded the stock to Buy in July 2021.
Needham maintained KLA with a Buy and price target of $395.
Price Action: KLAC shares traded lower by 0.78% at $307.99 on the last check Friday.

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