Morgan Stanley cuts KLA target to USD 227 for KLA Corporation stock

Published on 10/16/2026 at 10:13 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

KLA Corporation stock stands at EUR 155.30 on October 16, 2026, above Xetra close. Fiscal 2026 revenue was USD 13.58 billion, up from USD 12.16 billion.

Valuation and earnings timeline

Morgan Stanley cut its KLA target from USD 253.00 to USD 227.00 on October 6, 2026.
Fiscal 2026 revenue reached USD 13.58 billion, up from USD 12.16 billion in fiscal 2025.
KLA Corporation stock trades at EUR 155.30 at 10:05 a.m. CEST at Lang & Schwarz on October 16, 2026, 0.30 percent above the Xetra close of October 15, 2026.

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KLA Corporation (ISIN US4824801009) has a lower Morgan Stanley price target of USD 227.00, down from USD 253.00, while the analyst firm kept its Overweight rating on October 6, 2026. According to Investing.com, Morgan Stanley raised its calendar 2027 revenue forecast for KLA from USD 20.4 billion to USD 21.4 billion but applied a lower valuation multiple.

Why Morgan Stanley cut the target

The October 6, 2026 change separates operating expectations from valuation. Morgan Stanley increased its 2027 earnings per share estimate from USD 6.23 to USD 6.77 and expects KLA to grow 42 percent in 2027, compared with 37 percent for the wafer fabrication equipment market, according to Investing.com. The target multiple fell from 36 times to 28 times, making valuation the central counter-factor despite the higher operating forecast.

Three dates frame the setup

On July 28, 2026, KLA reported fiscal fourth-quarter revenue of USD 3.658 billion, ahead of the USD 3.600 billion consensus, with a 62.4 percent gross margin, as Investing.com reported. On October 1, 2026, KLA announced that it would publish first-quarter fiscal 2027 results on October 28, 2026. On October 6, 2026, Morgan Stanley cut its target to USD 227.00 from USD 253.00 while raising its 2027 revenue forecast, according to Investing.com.

What does October 28 mean?

The scheduled release will test whether KLA can convert its fiscal fourth-quarter momentum into the next reported period. KLA's fiscal 2026 revenue was USD 13.58 billion, compared with USD 12.16 billion in fiscal 2025, while net income rose to USD 4.83 billion from USD 4.06 billion. The company operates in semiconductor process control and process-enabling equipment, where its inspection and metrology systems are linked to chip manufacturing complexity.

The next reporting date

KLA will review first-quarter fiscal 2027 earnings on October 28, 2026, at 2:00 p.m. Pacific Time, with results published after the market close, according to KLA Corporation.

Stock price and valuation

KLA's market capitalization was USD 227.7 billion on October 16, 2026. Its Nasdaq 52-week range was USD 107.20 to USD 307.37 as of October 15, 2026. The valuation picture therefore combines rising operating forecasts with a lower analyst multiple.

KLA Corporation was trading at EUR 155.30 at Lang & Schwarz on October 16, 2026 at 10:05 a.m. CEST, 0.30 percent above the Xetra close of October 15, 2026 at EUR 154.84. The further course of trading is shown by the continuously updated real-time quote of KLA Corporation stock.