Krish Sankar, an analyst from TD Cowen, maintained the Buy rating on Lam Research. The associated price target is $125.00.
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Krish Sankar has given his Buy rating due to a combination of factors including Lam Research’s strong financial performance and optimistic outlook. The company reported a significant beat and raise quarter, driven by sustained demand from China, which led to record profitability. Additionally, Lam Research is experiencing momentum in advanced packaging and DRAM with Akara, and the potential for further NAND upgrades presents a promising opportunity.
Despite some mixed factors, such as increased revenue concentration in China and tariff uncertainties, the company’s gross margins have reached their highest levels in a decade. The outlook for wafer fab equipment (WFE) in 2025 has been revised upwards, reflecting stronger than expected demand from China. These elements contribute to a positive long-term growth trajectory, justifying the Buy rating.
In another report released on July 29, Stifel Nicolaus also maintained a Buy rating on the stock with a $110.00 price target.