KLA Corp stock dips as KeyBanc downgrades on lack of near-term catalysts

KLA Corporation (NASDAQ:) shares fell 2% on Friday after KeyBanc analysts lowered the rating to Sector Weight from Overweight.

The rating move comes after the stock exceeded KeyBanc’s previous $468 price target. The analysts cite a lack of catalysts and rich valuation as key reasons fueling the downgrade.

“From a fundamental standpoint, we think the troughing process is proceeding, but it’s not yet clear a positive inflection is at hand. While inflection timing remains uncertain, if history holds, it’s just a matter of time, and we expect to hear more about both the cycle and industry conditions at next week’s SEMICON West conference,” analysts wrote in a note.

“While we have a positive view toward eventual cycle recovery and we are increasing our Street-low FY25 estimates, we don’t see the NT fundamental catalyst or valuation support necessary to increase our price target from here.”

KLAC shares are up 22.4% year-to-date.