Lam Research (LRCX) PT Lowered to $325 at Needham & Company

Needham & Company analyst N. Quinn Bolton lowered the price target on Lam Research (NASDAQ: LRCX) to $325.00 (from $340.00) while maintaining a Buy rating.

The analyst comments "Lam Research reported C1Q20 revenue in-line with our estimates but did not issue guidance, citing COVID-19 uncertainties. However, C2Q20 revenue is expected to increase. On the call, management carefully hedged its 2020 WFE outlook. While saying 2020 WFE may fall to the low- to mid-$50bn range, it did not officially retract prior guidance of mid- to high-$50bn. While customer demand remains strong and there has been no change of plans by customers to date, management admits the COVID-19 recession may lead to some demand destruction in the future. Despite Lam's more conservative stance, we continue to believe WFE can reach ~$55bn in 2020 and maintain our revenue estimates. However, we are making adjustments below the top line to reflect inefficiencies and a slowing buyback, and trim our PT to $325."

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