Needham & Company on Lam Research (LRCX): Instead of Chasing Intel’s (INTC) Surprising Capex Plan, Buy Lam for its Attractive Growth Trajectory

January 20, 2012 10:41 AM EST
Get Alerts LRCX Hot Sheet
Price: $110.84 -0.36%

Rating Summary:
    18 Buy, 5 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Needham & Company reiterates a 'Buy' on Lam Research (NASDAQ: LRCX) price target raised from $46 to $50.

Needham analyst says, "We reiterate our Buy rating on LRCX and raise our PT. With its pending merger with Novellus (Nasdaq: NVLS), LRCX now stands to benefit from Intel’s (Nasdaq: INTC) surprisingly large capex budget. More importantly, we note that on a sequential quarterly basis, increased investments from TSMC and Samsung (both N/R) are bigger than Intel, and both LRCX and NVLS have meaningful exposure to these customers."

"Additionally, we believe LRCX’s revenue will outperform the industry in 2012 as the etch market grows faster than WFE and LRCX gains share in wet clean. While the stock price has run up on positive sector trends, we believe LRCX will see better growth trajectory throughout this year and would buy into the F2Q12 (Dec) earnings report due Jan 25th."

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 $42.32 yesterday.

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