Core Viewpoint - KLA Corp (NASDAQ:KLAC) is experiencing a downgrade from Morgan Stanley, but the price target has been increased due to strong earnings growth prospects in the semiconductor sector [1][2]. Group 1: Stock Downgrade and Price Target Adjustment - Morgan Stanley downgraded KLA Corp from 'Overweight' to 'Equal-weight' while raising the price target to $1,093 from $928 [1][2]. - The downgrade is attributed to concerns over stretched valuations, with the stock trading at a 30% premium [2]. Group 2: Earnings Growth and EPS Estimates - Morgan Stanley has raised the EPS estimate for KLA Corp for 2026 to $39.03 from $37.11, reflecting confidence in the company's growth [3]. - The investment bank expects wafer fab equipment revenue to grow by 10% to $128 billion, an increase from the previous forecast of 5% growth [3]. Group 3: Company Overview - KLA Corp specializes in developing and manufacturing equipment, software, and services for process control and yield management in the semiconductor and electronics industries [4]. - The company focuses on advanced inspection, metrology, and solutions aimed at defect detection, manufacturing process monitoring, and improving the quality and profitability of integrated circuits, wafers, and reticles [4].