The semiconductor manufacturing equipment sector undergoing a bottoming process, with a positive inflection not yet visible, according to KeyBanc — meaning further upside for KLA shares is limited. KeyBanc downgraded KLA to sector weight from overweight on account of the company's shares recently exceeding its previous price target of $468. "We don't see evidence of a rapid return to industry demand exceeding supply, but we think shares may be discounting a return to those record run-rate levels," said Barger. "We think shares have discounted a significant recovery well in advance of a fundamental improvement, and earlier than we've seen in prior cycles. KLA shares were down 1.3% in premarket trading.

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Persons: KeyBanc, Steve Barger, it's, Barger, we've, —, Michael Bloom