Analyst Stacy Rasgon from Bernstein maintained a Buy rating on Lam Research and increased the price target to $105.00 from $95.00.
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Stacy Rasgon has given his Buy rating due to a combination of factors that highlight Lam Research’s strong financial performance and strategic positioning. The company’s recent quarterly results exceeded expectations, with significant growth in foundry and NAND sales, which contributed to record gross margins. This performance was largely driven by robust demand from China, which accounted for a substantial portion of the revenue increase.
Furthermore, Lam Research’s forward guidance indicates continued strength, particularly in the Chinese market, which is expected to drive higher wafer fabrication equipment spending. Despite some concerns about potential tariff impacts and a conservative outlook for the latter half of the year, the company is well-positioned to benefit from key industry trends and internal execution. These factors, combined with a favorable valuation outlook, underpin Rasgon’s positive assessment and Buy rating for Lam Research.
In another report released today, Needham also maintained a Buy rating on the stock with a $115.00 price target.