Morgan Stanley ups Lam Research to Equal Weight on better memory end markets

As previously reported, Morgan Stanley upgraded Lam Research to Equal Weight from Underweight with a price target of $125, up from $92. The firm revised up its 2026 wafer fab equipment sales forecast from up 5% year-over-year to up 10%, with the revision “almost entirely” in memory, where its base case is now close to its prior bull case, the analyst tells investors. The firm, which revised up calendar year 2026 EPS estimates for Applied, KLA Corp. (KLAC) (KLA) and Lam Research (LRCX) by 5%-9% to reflect the firm’s new wafer fab equipment forecast, notes that its estimates now are Street high for all companies. Memory end markets “have turned for the better and we were wrong here and apologize,” the analyst added.