TD Cowen analyst Krish Sankar maintained a Buy rating on Lam Research (LRCX – Research Report) yesterday and set a price target of $100.00.
Krish Sankar has given his Buy rating due to a combination of factors that highlight Lam Research’s strong market position and growth potential. The company’s outlook for the June quarter exceeded expectations, with revenue projections surpassing consensus by 9%, driven by strength in the NAND and Foundry segments. This is particularly promising as Lam Research aims to increase its market share in the Foundry sector, where there is growing demand for deposition and etch intensity.
Additionally, Taiwan’s revenues experienced a significant quarter-over-quarter increase, largely attributed to advancements in packaging and Gate All Around technology. Despite a slight quarterly decline, NAND revenues showed a year-over-year increase, indicating potential for future growth as the market normalizes. Furthermore, Lam Research achieved record gross margins of 49% and maintained strong operational efficiency, with operating margins only slightly below peak levels despite increased R&D spending. These factors collectively support the Buy rating, reflecting confidence in the company’s ability to capitalize on market opportunities and sustain profitability.
In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $100.00 price target.