Needham & Company Reiterates Buy on Lam Research (LRCX) Ahead of 1Q Report

October 13, 2016 7:02 AM EDT
Get Alerts LRCX Hot Sheet
Price: $104.09 -2.86%

Rating Summary:
    17 Buy, 6 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 21 | Down: 36 | New: 11
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Needham & Company reiterated a Buy rating and $115.00 Price Target on Lam Research (NASDAQ: LRCX) ahead of the company's 1Q earnings report. Checks along the SemiCap supply chain support growing shipments going into 4Q16, and initial indication for a robust C1Q17.

Analyst Edwin Mok commented, "LRCX reports F1Q17 (Sep) on October 19 after market close, after ASML's [N/R] CY3Q16 call in the morning. Our recent conversations with the buy-side suggest growing fear of peaking in the space, and TSMC's [N/R] report might feed that fear. However, we believe a strong CY4Q16/1H17 outlook coming out of the earnings reports will help calm those fears, allowing stocks to grind higher. With increased market volatility, we prefer LRCX here over other mid/large-cap peers based on several relative drivers: 1) two positive catalysts (F1Q report on 10/19 & analyst event on 11/16); 2) a recovery in DRAM investments benefiting LRCX due to its high exposure; 3) LRCX's lower exposure to TSMC than peers; 4) continued leverage of increased etch/dep in WFE; and 5) Street estimates are typically conservative."

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 $98.68 yesterday.



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