Lam Research initiated with a Hold at HSBC

HSBC initiated coverage of Lam Research (LRCX) with a Hold rating and $127 price target Lam Research is well placed to benefit from structurally growing demand for wafer fab equipment and serviceable available market expansion associated with various technology transitions, the analyst tells investors in a research note. However, near-term revenue growth outperformance over WFE spending and overall growth are likely to slow, driven by tough comps in the foundry and NAND end markets, and upside to consensus estimates appears priced in, the firm says.