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Investing.com - Stifel raised its price target on Lam Research (NASDAQ:LRCX) to $135.00 from $115.00 on Monday, while maintaining a Buy rating on the semiconductor equipment maker’s stock.
The price target increase represents a 17.4% boost from the firm’s previous valuation, reflecting growing optimism about Lam’s market position in the semiconductor equipment space.
Stifel cited several growth drivers for Lam Research, including High Bandwidth Memory growth, market expansion in advanced foundry, and pent-up technology roadmap spending in NAND memory.
The firm noted that after Lam Research underperformed in wafer fabrication equipment (WFE) during calendar year 2023, the opposite trend is occurring in 2024-2025, with the company now outperforming the broader sector.
Stifel characterized Lam Research as "one of the stronger technology and better executing companies" in the semiconductor and semiconductor equipment industry, highlighting the company’s operational excellence as a key factor in its positive outlook. This assessment aligns with the company’s impressive 48.7% gross profit margin and robust return on equity of 58%.
In other recent news, Lam Research’s financial outlook has been a focal point for analysts. Morgan Stanley downgraded Lam Research from Equalweight to Underweight, adjusting its price target slightly down to $92.00, due to an anticipated slowdown in growth drivers in China and the NAND memory markets after 2025. Meanwhile, KeyBanc Capital Markets also downgraded the company from Overweight to Sector Weight, citing the recent stock price exceeding their target and outperforming peers. On the other hand, HSBC initiated coverage with a Hold rating and a $127.00 price target, noting Lam Research’s strong position in the growing demand for wafer fab equipment.
Additionally, Stifel maintained its Buy rating, highlighting upward trends in hyperscaler forecasts that could benefit Lam Research’s memory market position. The company also saw a 3% stock gain alongside peers like Seagate Technology and Micron, following new export regulations that are expected to boost flash pricing. These developments indicate a mix of cautious optimism and concern among analysts regarding Lam Research’s future performance in various markets.
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