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On Thursday, Stifel analysts maintained a Buy rating on Lam Research (NASDAQ:LRCX) with a steadfast $92.00 price target. The semiconductor equipment manufacturer, currently valued at $90.6 billion, continues to demonstrate strong financial performance with a healthy 47.7% gross profit margin. In a recent report, Stifel highlighted Lam Research’s performance in the third fiscal quarter ending in March, noting that the results were slightly above expectations. According to InvestingPro analysis, the stock is currently trading near its Fair Value. The company saw a significant increase in revenue from Taiwan and its Foundry sector, with over a 50% quarter-over-quarter growth. Building on its impressive 13.2% year-over-year revenue growth, the report emphasized the unexpected guidance for the fourth fiscal quarter ending in June, where Lam Research’s projected revenue range of $4.7 to $5.3 billion surpasses the consensus. InvestingPro subscribers can access 12+ additional exclusive insights about Lam Research’s growth trajectory and financial health metrics.
Analysts pointed out that NAND technology is anticipated to be the primary growth catalyst for Lam Research. This expectation is supported by the company’s successful capture of spending for upgrading older capacities. Despite not observing any immediate pull-in of shipments by customers, Lam Research anticipates that equipment revenue will be heavily skewed towards the first half of the calendar year. This is believed to be a consequence of export limitations in China and the assumption that spending on 2nm Gate-All-Around (GAA) technology will be concentrated in the first half of the year.
Stifel’s report further projects that even with an anticipated mid-single-digit decline in second-half calendar year revenue, Lam Research is expected to achieve a mid-teen year-over-year increase in revenue for the calendar year 2025. This growth trajectory is set to outperform the industry’s whole equipment spending, which is projected to grow at a mid-single-digit rate.
The $92 price target set by Stifel is based on approximately 18.5 times the firm’s estimated earnings per share for the calendar year 2026. This valuation aligns with Lam Research’s five-year average forward price-to-earnings ratio. Currently trading at a P/E of 21.3x, InvestingPro analysis indicates the stock is trading at a low P/E ratio relative to its near-term earnings growth potential. For deeper insights, investors can access the comprehensive Pro Research Report, available for Lam Research and 1,400+ other top US stocks, offering expert analysis and actionable intelligence for smarter investment decisions.
In other recent news, Lam Research Corporation has reported financial results for the third fiscal quarter of 2025, exceeding consensus estimates. The company’s revenue and earnings per share (EPS) were 2% and 3% above consensus, respectively, with guidance for the fourth fiscal quarter indicating potential further increases. Cantor Fitzgerald has maintained an Overweight rating on Lam Research, projecting a significant growth trajectory with CY25 revenues expected to reach $18.7 billion and EPS estimates adjusted to $4.10. Meanwhile, TD Cowen has lowered its price target to $100 but maintained a Buy rating, citing a positive outlook due to increased demand in the NAND and Foundry sectors.
KeyBanc Capital Markets also reaffirmed an Overweight rating, highlighting Lam Research’s robust margin performance and strategic positioning in advanced technologies. JPMorgan, while reducing its price target to $95, maintained an Overweight rating, recognizing the company’s strong March-quarter earnings and favorable June-quarter guidance. Berenberg reiterated a Buy rating with a $90 price target, noting the company’s stable wafer fabrication equipment (WFE) capex estimates despite tariff concerns. These developments underscore Lam Research’s strategic focus and market positioning amid evolving industry dynamics.
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