Morgan Stanley Cuts Estimates on Top Pick, Lam Research (LRCX)

Morgan Stanley analyst Joseph Moore reiterated an Overweight rating and $730.00 price target on Lam Research (NASDAQ: LRCX) while cutting estimates due to ongoing supply challenges. The company remains the Top Semi Pick on the belief that the spending is delayed not removed.

The analyst stated "Demand per our checks remains very strong, and tool installation activity at customers is also very strong. But the same issues which plagued Lam last quarter - minor supply chain limitations that won't allow final assembly of the tool - are likely to hold back revenues in the March and June quarters. Of course, the company had already guided for these issues, but with their commentary continuing to sound cautious with regards to supply chain issues, and our own checks, we think it's prudent to reduce near-term expectations
slightly. Shortages are a small portion of the bill of materials, but we continue to see issues with some semiconductors, gas panels, and some plastics."

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 $456.16 yesterday.

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