Morgan Stanley cuts KLA to 'equal-weight'

Morgan Stanley downgrades chipmaking equipment supplier KLA Corp KLAC.O to "equal-weight" from "overweight"

Shares of the company marginally down 0.15% at about $1,070 in early trading

However, brokerage lifts PT to $1,093 from $928, new PT shows a premium of 2% from the stocks last close

Morgan Stanley sees limited relative upside due to KLAC's premium valuation compared to peers Applied Materials and Lam Research

Brokerage still expects co to outpace the water fabrication equipment market in 2025 and 2026, citing a "rich catalyst path for a re-rating" already be priced in

Notes co holds a dominant position in semiconductor process control, with its metrology and inspection tools embedded in the manufacturing workflow of TSMC and Samsung

13 of 27 brokerages rate the stock "buy" or higher, 14 "hold"; their median PT is $930- data compiled by LSEG

Including session moves, shares up 69.8% YTD