Lam Research stock price target raised to $170 from $145 at TD Cowen

Investing.com - TD Cowen raised its price target on Lam Research (NASDAQ:LRCX) to $170.00 from $145.00 on Thursday, while maintaining a Buy rating on the semiconductor equipment manufacturer’s stock. The company, with its impressive market capitalization of $182.79 billion and "GREAT" financial health score according to InvestingPro, has demonstrated robust performance with a 96% return over the past year.

The firm cited Lam Research’s September quarter performance, which exceeded expectations primarily due to strong demand from China for front-end and logic equipment. This success is reflected in the company’s impressive 23.68% revenue growth over the last twelve months, though current valuation metrics suggest the stock may be trading above its Fair Value.

TD Cowen noted that Lam’s December quarter guidance came in better than expected, despite a $200 million reduction in China sales resulting from Bureau of Industry and Security (BIS) affiliate rules, which are projected to impact the company by $600 million in calendar year 2026. For deeper insights into Lam Research’s valuation and growth prospects, InvestingPro offers comprehensive analysis through its detailed Pro Research Report, available among 1,400+ top US stocks.

The research firm’s outlook for the wafer fabrication equipment (WFE) market aligns with Lam management’s view that growth will be weighted toward the second half of 2026, with China demand expected to decrease.

TD Cowen expressed optimism about Lam’s positioning for 2027, citing continued NAND upgrades alongside growth in high bandwidth memory (HBM) and leading-edge front-end/logic segments, which the firm expects will drive an even stronger wafer fabrication equipment market.

In other recent news, Lam Research has been the focus of several analyst updates and financial projections. The company reported a slight revenue beat for the third quarter of 2025, with guidance for the fourth quarter surpassing Wall Street expectations, according to Needham. This prompted Needham to raise its price target for Lam Research to $160 from $150, maintaining a Buy rating. Additionally, UBS increased its price target to $165 from $155, citing stronger-than-expected guidance and positive commentary regarding calendar year 2026. UBS highlighted that Lam Research’s management projected earnings per share of $5.25-5.50 for 2026, though UBS’s own estimate is higher at $5.64 per share.

Bernstein also raised its price target significantly from $105 to $170, maintaining an Outperform rating. This adjustment reflects Bernstein’s confidence in Lam Research’s market position and growth prospects, particularly in wafer fabrication equipment. Cantor Fitzgerald reiterated its Overweight rating and set a price target of $170, despite new export restrictions impacting Lam Research. Cantor Fitzgerald projects earnings per share of $4.80 for calendar year 2025, surpassing the consensus estimate of $4.60. These developments highlight the ongoing analyst optimism surrounding Lam Research’s future performance.

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