The firm has an $80 price target on shares of the Milpitas, CA-based provider of process control and yield management solutions.
Cowen said shares are now "too interesting to ignore" regardless of the Lam Research (LRCX) deal outcome, the Fly reports.
Last October, Lam said it would buy KLA for $11 billion. The companies initially expected the transaction to have closed in the middle of this year, but then extended that deadline to September.
Earlier this month, the companies said it could take longer than expected to receive approval for the planned merger.
"While we think the big picture for LRCX is still a good one, the more acute near-term opportunity seems to be with KLAC given what appears to be only about 5-7% downside to $62-63 against about 20% upside. Given the run in semis, there is just simply not much out there with 3 or 4:1 risk/reward from current levels," Cowen wrote in a note cited by Barron's.
About 1.86 million of KLA's shares changed hands today vs. its average volume of 1.3 million shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on KLA stock.
The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance.
The team believes its strengths outweigh the fact that the company has had generally high debt management risk by most measures that were evaluated.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: KLAC