Raymond James has revised its price target for Lam Research (NASDAQ:LRCX) from $125 to $100, while keeping an Outperform rating. This downgrade is linked to downturns in the DRAM sector in China.
The analyst noted decreased quarterly estimates for December 2024 due to the DRAM slowdown. However, they remain optimistic about Lam Research’s future, thanks to growth in High Bandwidth Memory (HBM) and progress in Foundry/Logic, which made up 64% of sales in June 2024.
Looking ahead, TSMC’s N2 node could drive growth for Lam Research. There’s also hope for a rebound in the NAND sector, potentially boosting Wafer Fabrication Equipment (WFE) spending in 2025.
Investors are closely monitoring Lam Research as the company faces industry challenges and explores new opportunities.
In recent news, Lam Research reported $3.87 billion in revenue, exceeding expectations, driven by demand for AI chips, and announced a 15% increase in its quarterly dividend.
Meanwhile, Morgan Stanley lowered its price target to $77, keeping an Equalweight rating, while Mizuho Securities maintained their Outperform rating but cut the target from $1,050 to $950.
Lam Research also conducted a ten-for-one stock split, increased its authorized shares, and will see two board members depart in November 2024, replaced by industry veterans.
InvestingPro Insights
Despite the price target cut, Lam Research boasts a market cap of $111.08 billion and a P/E ratio of 29.42, suggesting strong investor confidence. The company has raised dividends for 10 consecutive years, currently yielding 1.07%, which could provide stability for investors.
For more in-depth analysis, InvestingPro provides additional insights on Lam Research’s financial health and market position.
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