Process control and yield management solutions provider KLA-Tencor Corporation (KLAC) on Tuesday caught a big downgrade from analysts at Deutsche Bank.
The firm cut its rating on KLAC from “Hold” to “Sell” while slashing its price target from $56 to $44. That new target suggests a 17% downside to the stock’s Monday closing price of $52.98.
A Deutsche Bank analyst commented, “We expect improving 28nm yields to negatively impact demand for process control equipment in the foundry sector and see risk of a multi-quarter bookings slowdown in 2013. With shares trading near 52-week highs, at a premium valuation and considering high investor expectations, we recommend investors take profits as we see downside to ~$40-$45 levels.”
KLA-Tencor shares fell $1.16, or -2.2%, in premarket trading Tuesday.
The Bottom Line
Shares of KLA-Tencor (KLAC) have a 3.02% dividend yield, based on last night’s closing stock price of $52.98. The stock has technical support in the $47-$48 price area. If the shares can firm up, we see overhead resistance around the $55-$57 price levels.
KLA-Tencor Corporation (KLAC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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