Lam Research (LRCX): Good Quarter but PT Increase Comes From KLAC Acquisition - Needham

Needham & Company analyst Edwin Mok, reiterated his Buy rating on Lam Research (NASDAQ: LRCX) after the company reported strong F4Q16 (Jun) results and provided F1Q17 (Sep) guidance above consensus. While some investors might be taken back by slower shipments in the December quarter, the analyst believes it is largely driven by timing and would expect shipment growth to resume in CY1H17.

LRCX continues to benefit from the industry technology inflections, particularly around 3D NAND and multi-patterning processes, which are driving an increased intensity of etch/deposition processes. Despite the delay, the analyst remains confident that the KLAC acquisition will be completed within the coming months, and based on the expected accretion of this deal, he is raising his PT from $95 to $105 utilizing a similar CY17 P/E multiple of direct comp on AMAT.

For an analyst ratings summary and ratings history on Lam Research click here. For more ratings news on Lam Research click here.

Shares of Lam Research closed at $91.96 yesterday.

You May Also Be Interested In

• TechnipFMC (FTI) PT Raised to $30 at BTIG
• IBM tumbles on soft Q1 revenue; announces HashiCorp $6.4bn acquisition
• CyberAgent Inc. (4751:JP) (CYGIY) PT Raised to JPY1,370 at Nomura/Instinet