KLA Corporation (NASDAQ:KLAC) shares were downgraded by KeyBanc to Sector Weight from Overweight. The downgrade came after the stock surpassed KeyBanc's previous price target of $468. The firm attributed the rating change to a lack of catalysts and a rich valuation.

The analysts mentioned that while the process of reaching a trough in fundamentals is ongoing, there is no clear indication of a positive inflection point yet. However, based on historical patterns, analysts believe that a positive inflection is only a matter of time.

While the analysts maintain a positive outlook for the eventual recovery of the cycle and have increased their fiscal 2025 estimates, they do not see the near-term fundamental catalysts or valuation support necessary to raise the price target beyond its current level.