Lam Research downgraded at Morgan Stanley on semi cap caution

As previously reported, Morgan Stanley downgraded Lam Research to Equal Weight from Overweight with an unchanged price target of $720 in conjunction with moving the firm’s industry view on Semiconductor Capital Equipment from In-Line to Cautious. Capital equipment stocks were material outperformers in 2023 and consensus is that there will be a DRAM recovery, but DRAM equipment revenues are currently at an all time high, the analyst tells investors. Consensus also sees weakness in trailing edge logic being offset by strength at the cutting edge, but the firm sees weakness in both, the analyst added.