SoFi CEO enters prepaid forward contract on 1.5 million shares
On Thursday, Stifel analysts maintained a positive outlook on Lam Research (NASDAQ:LRCX) shares, reiterating a Buy rating and a price target of $100.00. As a prominent player in the Semiconductors & Semiconductor Equipment industry with a market capitalization of $115.77 billion, Lam Research has demonstrated strong financial health according to InvestingPro analysis. The firm’s analysts highlighted the company’s Investor Day, which showcased an expanding portfolio of etch and deposition platforms. These innovations are expected to drive growth in the company’s serviceable available market (SAM), market share, and performance above the wafer fabrication equipment (WFE) industry’s growth rate through the end of the decade.
During the Investor Day, Lam Research introduced two new platforms, Altus Halo and Akara. These platforms, focusing on molybdenum deposition and conductor etch respectively, have already started to gain early traction with leading-edge logic, DRAM, and NAND manufacturers. The company’s new financial model targets for the calendar year 2028 were also announced, projecting $25-27 billion in revenue, 50% gross margins (GMs), 34-35% operating margins (OpMs), and $6.00-7.00 non-GAAP earnings per share (EPS). This ambitious outlook builds on the company’s current strong performance, with revenue growing at 13.21% over the last twelve months and maintaining an impressive dividend growth rate of 15%.
The midpoint of these financial targets indicates a substantial expansion from the previous peak, with 1.4 times revenue growth and 1.7 times EPS growth over a four-year period. This growth trajectory aligns closely with Stifel’s own expectations, which forecast 1.5 times revenue and 1.5-2.0 times EPS growth, albeit over a slightly longer timeframe.
Stifel’s analysts are optimistic about Lam Research’s prospects, particularly as the company is poised to benefit from increased spending on advanced technologies such as NAND with 2xx-layer and Gate-All-Around logic transistors. The firm anticipates that Lam Research will outperform the market by several hundred basis points in terms of revenue, giving the company a strong position as the 2025 calendar year approaches.
In conclusion, Stifel’s continued endorsement of Lam Research reflects confidence in the company’s strategic direction, technological advancements, and financial goals. The firm’s analysts expect Lam Research to achieve significant growth and market outperformance in the coming years, underpinned by its innovative product offerings and favorable industry trends. InvestingPro data reveals the stock is currently trading above its Fair Value, with a P/E ratio of 27.33 and strong return metrics including a 50% return on equity. For deeper insights into Lam Research’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 13 additional ProTips and extensive financial metrics.
In other recent news, Lam Research has been the focus of several analyst updates following its Analyst Day event. The company presented ambitious financial targets, projecting a doubling of earnings power by 2028, with an Earnings Per Share (EPS) midpoint of $6.50. Cantor Fitzgerald maintained an Overweight rating, with a price target of $100, highlighting Lam’s strategy to capture a larger share of the wafer fabrication equipment (WFE) market. TD Cowen was more optimistic, increasing its price target to $110 and maintaining a Buy rating, citing potential market share gains in key technology segments.
Susquehanna upgraded Lam Research from Neutral to Positive, raising the price target to $125, driven by the company’s strategic market expansion and potential benefits from Samsung (KS:005930)’s Memory business recovery. KeyBanc Capital Markets also raised its price target to $105, emphasizing Lam’s plans to double revenue and EPS by 2028. Meanwhile, Citi reiterated its Buy rating with an $87 target, acknowledging Lam’s focus on expanding its serviceable available market and seizing technological inflection points. These developments reflect a broad confidence among analysts in Lam Research’s strategic direction and growth potential in the semiconductor equipment industry.
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