Lam Research (LRCX) PT Raised to $425 at Susquehanna

Susquehanna analyst Mehdi Hosseini raised the price target on Lam Research (NASDAQ: LRCX) to $425.00 (from $330.00) while maintaining a Positive rating after June quarter revenue of $2.79B beat consensus of $2.68B. Non-GAAP EPS came in at $4.78, compared to SFG/consensus of $3.75/ $4.06.

The analyst highlighted 3 revenue trends that should help the company report consistent upside:

1) China will continue to buy semi cap equipment even if it is not put into operation right away. China accounted for 34% of the June-quarter revenue mix vs. an average of 25% over the prior eight quarters and nearly 3x more than the mix in June 2017.

2) Customer Support Business Unit (CSBU) was broken out for the first time and accounted for ~33% of the June-quarter revenues. This illustrates is expected to grow at a faster rate than Systems.

3) Lam has historically had a dominant position in TSVs, most commonly used in the manufacturing of (2.5D/3.0D) Advanced Packaging and Image Sensors.

The analyst reiterated the Positive rating, stating "we remind investors Lam is in the great position to benefit from incremental revenues that can help increase Lam's market share among foundries like TSM. All in all, we are pleased with the results/guide and are increasing our FY20/21 EPS to $15.94/$22.78 vs. current consensus of $15.19/$17.85".

You May Also Be Interested In

• Piper Sandler Reiterates Overweight Rating on Estee Lauder (EL), 'F4Q26 Preview'
• Solar Industries (SOIL:IN) PT Raised to INR23,500 at ICICI Securities
• KP Tissue Inc. (KPT:CN) (KPTSF) PT Raised to Cdn$13.50 at Desjardins