Lam Research (LRCX) is 'Too Cheap', Nomura Says

Nomura Securities analyst Romit Shah reiterated a Buy rating and $65 price target on Lam Research (NASDAQ: LRCX) into Q3 results calling the stock "too cheap."

Shah said, "Lam is one of the cheapest names in our coverage, trading at slightly more than 10x earnings. We believe shares are discounting, among other things, an estimate cut when the company reports on April 23rd. We expect weaker memory spending in the June period to drive EPS of $0.91, below consensus of $1.09."

He adds, "That said, Lam appears well positioned for stronger growth beginning in the second half of the year. DRAM manufacturers are accelerating their transitions to 25nm and 20nm. In addition, NAND suppliers are moving to 15/16nm, while Samsung is pushing for second-generation 3D NAND, which in particular represents a substantial opportunity for Lam."

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 $56.00 yesterday.

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