In a report released today, Joseph Moore from Morgan Stanley maintained a Hold rating on Lam Research, with a price target of $94.00.
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Joseph Moore has given his Hold rating due to a combination of factors that reflect both strengths and uncertainties in Lam Research’s current performance. The company has shown impressive results in its June quarter, particularly in NAND revenue, which reached its highest level since December 2022, and in foundry operations, which achieved record highs. Additionally, Lam Research’s gross margin of 50.3% was a record, benefiting from a strategic shift in manufacturing to Malaysia. These positive aspects highlight Lam’s strong position in the market.
However, Joseph Moore also identifies potential challenges that temper the overall outlook. A significant portion of Lam’s revenue growth has been driven by China, which reached a record level in the June quarter. While this growth is promising, it introduces uncertainty about the sustainability of such performance, especially given the unexpected strength from new customer payments. Furthermore, despite the company’s year-to-date stock price increase of 37%, which outpaces its peers, there is skepticism about how much further the company’s story can improve from this point. These mixed signals contribute to the Hold rating, as the future trajectory remains uncertain.
Moore covers the Technology sector, focusing on stocks such as Nvidia, Marvell, and Advanced Micro Devices. According to TipRanks, Moore has an average return of 13.1% and a 57.83% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $83.00 price target.