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Tuesday, Lam Research Corporation (NASDAQ:LRCX) shares maintained a positive stance following Cantor Fitzgerald’s reiteration of an Overweight rating and a $100.00 price target. The firm anticipates a bullish outlook from the company during its first Investor Day since March 2020, which is scheduled for this week. According to InvestingPro data, LRCX has demonstrated strong fundamentals with a 13.2% revenue growth over the last twelve months and maintains a robust financial health score. Currently, 24 analysts are actively covering the stock, with targets ranging from $75 to $110.
Analysts at Cantor Fitzgerald predict that Lam Research will unveil a new target model for 2028, which suggests a significant increase in earnings power. The forecast points to targeted earnings of approximately $6.50, indicating a potential near doubling of earnings power over the next four years. This optimistic projection is based on the company’s growth trajectory and strategic initiatives.
In addition to the earnings forecast, Cantor Fitzgerald expects Lam Research to increase its dividend significantly. The projection sees the dividend rising from the 2024 figure of $0.79 to $1.50 by 2028, marking a substantial increase for shareholders. InvestingPro analysis reveals that LRCX has already raised its dividend for 11 consecutive years, with a current yield of 1.11% and a 15% dividend growth rate in the last twelve months. Subscribers can access 12+ additional ProTips and comprehensive dividend metrics through InvestingPro’s detailed research reports.
The reiterated Overweight rating and $100 price target reflect around a 20-25% upside from the current share price, based on approximately 22 times Cantor Fitzgerald’s calendar year 2026 EPS estimate of $4.65. Looking further ahead, if the same earnings multiple is applied to the firm’s 2028 EPS outlook, analysts suggest that there could be a longer-term share upside to $150. The company currently trades at a P/E ratio of 24.95, which InvestingPro analysis indicates is relatively low compared to its near-term earnings growth potential.
Cantor Fitzgerald’s positive stance on Lam Research stock comes ahead of the company’s Investor Day, where stakeholders anticipate further details on the company’s strategic plans and financial targets for the coming years. The event is expected to provide investors with insights into how Lam Research aims to achieve its ambitious earnings and dividend growth targets.
In other recent news, Lam Research Corporation announced a quarterly dividend of $0.23 per share, reflecting its ongoing commitment to returning value to shareholders. On the analyst front, Stifel maintained a positive outlook on Lam Research, highlighting the substantial increase in NAND sales and potential growth in advanced NAND, DRAM, and Foundry segments. Similarly, Cantor Fitzgerald upgraded Lam Research’s stock rating to Overweight, following a recent earnings report that surpassed expectations. The firm also projected a significant uptick in NAND and revenue growth from advanced technologies.
KeyBanc Capital Markets echoed this positive sentiment, maintaining an Overweight rating on Lam Research shares. The firm cited the company’s forecast of mid-single-digit wafer fabrication equipment (WFE) growth and advancements in leading-edge nodes as key growth drivers. Goldman Sachs also raised its price target for Lam Research, underpinned by the company’s optimistic forecast for the WFE market and its strong position in Deposition and Etch product areas.
These recent developments highlight Lam Research’s solid financial performance and positive outlook from several analyst firms, including Stifel, Cantor Fitzgerald, KeyBanc Capital Markets, and Goldman Sachs. It’s important to note that these projections are subject to various factors that could impact future performance.
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