KLA Corp. rises after Q1 results top estimates, analysts highlight strong execution
KLA Corp. (NASDAQ:KLAC) shares rose in premarket trading on Friday after the semiconductor equipment company posted first-quarter results that Wall Street analysts said showed the company is executing better than its peers.
Wells Fargo analyst Joe Quatrochi, who rates KLA Corp. (KLAC) overweight and has a per-share price target of $400, noted that the company's gross margin guidance of 63%, plus or minus 50 basis, showed its execution strength compared to industry peers.
It also has an upcoming analyst day that Quatrochi said could be a "positive catalyst for shares," as the company should highlight "its strong positioning in process control and rising capital intensity as driving continued [wafer fab equipment] outperformance."
KLA Corp. (KLAC) shares rose more than 1% to $337.01 in premarket trading on Friday.
Stifel analyst Patrick Ho, who rates KLA Corp. (KLAC) buy with a per-share price target of $505, noted that secular trends are driving demand for wafer fab equipment, which should help the company. 
"As secular trends drive sustained spending in [wafer fab equipment], we believe KLA is poised to outperform given its market position in the growing process control marketplace," Ho wrote in a note to clients, adding that as the trend increases, "KLA should be the biggest beneficiary."
KeyBanc analyst Steve Barger, who rates KLA Corp. (KLAC) overweight with a price target of $440 per share, added that the company echoed industry conditions seen by other companies, notably relating to the China Covid-shutdown and supply constraints, but there is still strong demand that does not appear to be slowing any time soon. 
"Given customer investments across nodes, KLAC maintained its expectation that [wafer fab equipment] should top $100 [billion] this year," Barger explained.
Prior to earnings, investment firm Morgan Stanley said it expected a "solid" quarter from KLA Corp. (KLAC), noting its supply chain should be less impacted than peers.