Susquehanna sees 31% downside as it cuts KLA-Tencor to Sell

|About: KLA-Tencor Corporation (KLAC)|By:, SA News Editor

KLA-Tencor (NASDAQ:KLAC) is 0.7% lower after a downgrade at Susquehanna to Negative from Neutral on low expectations for foundry spending next year.

Those customers make up more than 50% of KLA-Tencor's revenue, the firm says, and equipment re-use by customers as part of technology migration means spending may fall 8% to 10% from foundry clients.

In addition, the company's Gen5 tool hasn't increased its market share among foundry customers, Susquehanna says.

It's lowered its price target to $65 from $72 -- the lowest target among analysts -- implying 31% downside from current pricing.