Analyst Shane Brett CFA from Morgan Stanley maintained a Sell rating on Lam Research and keeping the price target at $92.00.
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Shane Brett CFA has given his Sell rating due to a combination of factors related to Lam Research’s future growth prospects and market dynamics. Although Lam Research has shown significant success in gaining market share, particularly in China, there are concerns about the sustainability of this growth. The company faces elevated comparisons into 2026, and while it has outperformed in China due to strong management execution, the outlook for continued growth is cautious. The forecast suggests that Lam’s shipments will align more closely with the market, with a slight decline in China revenue anticipated.
Additionally, while Lam has benefited from the NAND upgrade cycle, there are questions about the durability of this growth. Despite being a major beneficiary of NAND upgrade spending, the rate of growth is expected to slow down, consistent with the company’s own commentary. Management has set expectations effectively, but the magnitude of earnings beats has increased significantly, suggesting that future growth may not be as robust as anticipated. Therefore, the Sell rating reflects a conservative approach to the company’s future performance amidst these uncertainties.
According to TipRanks, Brett CFA is a 3-star analyst with an average return of 8.0% and a 70.59% success rate. Brett CFA covers the Technology sector, focusing on stocks such as Applied Materials, KLA, and Lam Research.