Shares of chip-equipment maker KLA-Tencor Corp. rose 5.2% in Monday morning trading following an upgrade from analysts at KeyBanc Capital Markets. The analysts, led by Weston Twigg, now rate the stock at overweight and have a $134 price target on shares. “We believe KLA-Tencor is underappreciated and has the potential to break out in 2018 as the relative rate of capital expenditure growth between NAND and logic/foundry normalizes,” Twigg wrote. He thinks that the company has new products in its pipeline that could drive upside, especially in 2018. Twigg also predicts that the company will remain a strong cash generator and continue to deliver better margins than its peers. Shares of KLA-Tencor have gained 42% so far in 2017, compared with a 20% rise for the S&P 500 .
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