Lam Research price target lowered to $90 from $110 at BofA

BofA lowered the firm’s price target on Lam Research (LRCX) to $90 from $110 and keeps a Buy rating on the shares. For U.S. chip vendors, the firm expects Q1 results to beat as their original outlook was likely conservative and as tariff related pull-ins created a better demand environment, the analyst tells investors in an earnings preview for the group. However, the firm lays out scenarios where a “modest” tariffs equate to a 4%-6% sales hit on average for the group and where “deeper” tariffs in “a dire scenario” equate to sales decline of 9% and 12% in calendar year 2025 and 2026 on average. In a modest tariff scenario, the EPS hits could be 12%-13%, added the firm, which lower targets across its semis coverage to reflect growing uncertainty.