Shares of KLA Corp.
are up 0.9% in premarket trading after Susquehanna Financial Group analyst Mehdi Hosseini upgraded the stock to positive from neutral. “We expect material upside to consensus estimates for KLAC as the company is expected to capture a larger mix of the [wafer-fab equipment] spend, while also benefiting from secular trends in advanced packaging, key factors that were not available to the company in the prior 5+ years,” he wrote. Hosseini also downgraded shares of Applied Materials Inc.
Lam Research Corp.
and Advanced Energy Industries Inc.
writing that “the beat-and-raise cycle for AMAT, LRCX, and AEIS is already behind us with all the good news already dialed in.” Applied Materials and Lam Research shares are both off 1.1% in premarket trading. He said that his upgrades and downgrades are meant to reflect his view of earnings momentum and aren’t a cyclical call on the industry. ” Given all the various moving parts, we simply don’t know enough to call a downturn,” Hosseini wrote.