Lam Research stock price target raised to $120 from $115 at Cantor Fitzgerald

Investing.com - Cantor Fitzgerald raised its price target on Lam Research (NASDAQ:LRCX) to $120.00 from $115.00 on Thursday, while maintaining a Buy rating on the semiconductor equipment manufacturer. The company, currently valued at $125.5 billion, has demonstrated strong momentum with a 38% year-to-date return according to InvestingPro data.

The firm’s updated outlook follows meetings with Lam Research management in New York this week, including CFO Doug Bettinger and Chief Accounting Officer Tina Correia. Cantor Fitzgerald noted management remains "very bullish" on the company’s competitive positioning into 2026 and beyond, driven by new product platforms and exposure to fast-growing semiconductor production equipment areas. This optimism is supported by the company’s impressive 23.7% revenue growth and strong return on equity of 58% over the last twelve months.

Cantor Fitzgerald highlighted that Lam Research has "quietly morphed to far greater exposure to Foundry and Logic than most investors appreciate," moving beyond its traditional perception as primarily a memory-focused company. The firm also pointed out that unlike competitor Applied Materials (NASDAQ:AMAT), Lam Research reported no changes in visibility from leading-edge customers, with domestic China business actually strengthening.

The research firm now sees a "stretch goal" earnings per share of $6.00 in calendar year 2026 as "very doable," compared to the consensus estimate of $4.74. This projection supports the new price target, which represents a multiple of 20 times the firm’s stretch goal EPS estimate.

Cantor Fitzgerald maintained its Overweight rating on Lam Research stock, which it continues to list as a "TOP PICK" with over 20% upside potential from current levels. InvestingPro data reveals that 23 analysts have recently revised their earnings estimates upward for the upcoming period, suggesting growing confidence in the company’s prospects. For deeper insights into LRCX’s valuation and growth metrics, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

In other recent news, Lam Research reported quarterly earnings and revenue that exceeded consensus estimates, driven by record results in its foundry segment, particularly from China, and increased NAND upgrade activity. In light of these results, Mizuho (NYSE:MFG) raised its price target for Lam Research to $120, citing a better outlook for the company’s business in China and projecting $5.20 billion in revenue for the September quarter, surpassing analysts’ estimates of $4.7 billion. Stifel also increased its price target to $115, maintaining a Buy rating, after Lam Research’s performance exceeded expectations. Similarly, Needham raised its price target to $115, highlighting the company’s improved outlook for wafer fabrication equipment, now expected to reach $105 billion by 2025, due to rising demand in China.

On a different note, Summit Insights downgraded Lam Research from Buy to Hold, pointing to anticipated moderation in wafer fabrication equipment spending in 2026. Despite this downgrade, Summit Insights remains positive about technological advancements, such as the transition to Gate-All-Around (GAA) and dry EUV photo resist, which could drive growth in the latter half of 2025. Erste Group initiated coverage on Lam Research with a Buy rating, emphasizing the company’s growth potential in the semiconductor wafer manufacturing equipment market. These recent developments reflect varied analyst perspectives on Lam Research’s future prospects.

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