Analyst Shane Brett CFA from Morgan Stanley maintained a Hold rating on Lam Research and keeping the price target at $125.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Shane Brett CFA has given his Hold rating due to a combination of factors impacting Lam Research’s near-term performance and future outlook. The company’s second-half numbers are expected to be lackluster, with a notable decline in NAND revenue and a potential drop in gross margins due to an unfavorable customer mix. Despite these challenges, the company has consistently outperformed street estimates in recent quarters, which suggests that the market’s expectations may be slightly conservative.
Looking ahead, Shane Brett CFA is optimistic about Lam Research’s potential for growth, particularly with the anticipated 2026 Wafer Fab Equipment (WFE) guidance, which is expected to show moderate growth and potential outperformance. Additionally, there are early signs of supply chain preparations for shipment growth in the first half of the year. However, the analyst highlights that customer announcements and earnings, rather than the company’s own earnings, will likely be the main drivers of stock performance, suggesting a cautious approach in the near term.
In another report released on October 3, Wells Fargo also maintained a Hold rating on the stock with a $135.00 price target.