Morgan Stanley cuts target for KLA Corporation stock to USD 227.00

Published on 10/06/2026 at 16:59 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

KLA reported USD 13.58 billion revenue in fiscal 2026, up 11.71 percent. KLA Corporation stock reflects USD 4.83 billion net income, up 18.94 percent.

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KLA Corporation (ISIN US4824801009) faces a fresh valuation test after Morgan Stanley lowered its price target to USD 227.00 from USD 253.00 on October 6, 2026. The bank retained its Overweight rating while raising its calendar year 2027 revenue forecast for KLA to USD 21.40 billion from USD 20.40 billion, according to Investing.com.

Target cut meets stronger forecasts

Morgan Stanley also lifted its calendar year 2027 earnings per share estimate to USD 6.77 from USD 6.23. Its semiconductor equipment view remains constructive, with projected 2027 growth of 42.00 percent for KLA against 37.00 percent for the broader wafer fabrication equipment market, as reported by Investing.com.

The lower target therefore reflects valuation discipline rather than a weaker operating forecast. Morgan Stanley cut its target multiple to 28 times earnings from 36 times, while pointing to improved leading-logic forecasts and higher expected gross margins.

Fiscal 2026 set a higher bar

KLA generated USD 13.58 billion of revenue in fiscal 2026, up 11.71 percent from USD 12.16 billion in fiscal 2025. Net income rose 18.94 percent to USD 4.83 billion from USD 4.06 billion, according to KLA's fiscal-year figures summarized in its proxy filing at Stock Titan.

The latest annual performance also included USD 4.14 billion in operating cash flow for fiscal 2026. That earnings base gives analysts room to model faster demand, but the target reduction shows that valuation remains a separate constraint even when revenue and profit are expanding.

Nasdaq quote and valuation

KLAC was trading at USD 197.23 on Nasdaq on October 6, 2026 at 10:58 a.m. EDT, down USD 9.62 or 4.65 percent from the prior close of USD 206.85. The market capitalization was USD 257.6 billion, while the 52-week range stood at USD 98.10 to USD 307.37 as of October 6, 2026.

KLA is scheduled to report fiscal first-quarter 2027 results on October 28, 2026, according to Simply Wall St. The upcoming report will test whether the company's fiscal 2027 revenue outlook of USD 4.00 billion plus or minus USD 200.00 million supports the stronger growth assumptions now cited by Morgan Stanley.