Vivek Arya, an analyst from Bank of America Securities, reiterated the Buy rating on Lam Research. The associated price target remains the same with $165.00.
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Vivek Arya has given his Buy rating due to a combination of factors including Lam Research’s strong performance and growth prospects. The company reported quarterly sales and earnings per share that exceeded market expectations, even in the face of new restrictions affecting its operations in China. This resilience is attributed to the company’s ability to capitalize on opportunities outside of China, with expectations of over 20% year-over-year growth in these markets.
Furthermore, Lam Research is poised for significant growth in the coming years, driven by advancements in leading-edge foundry, logic, and DRAM sectors. The company is also making progress in increasing its share of the serviceable addressable market, with a goal to expand from the low-30% range to the high-30% range. Despite some risks related to market deceleration and high exposure to China, the long-term benefits from AI deals and robust gross margin targets support the Buy rating, with a price objective set at $165.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $169.00 price target.
LRCX’s price has also changed dramatically for the past six months – from $63.480 to $141.250, which is a 122.51% increase.