Citi Opens 90-Day Upside Catalyst Watch on Lam Research (LRCX)

Citi analyst Atif Malik reiterated a Buy rating and $560.00 price target on Lam Research (NASDAQ: LRCX).

• Opens 90-Day Upside Catalyst Watch

The analyst comments "We spent time on the road with Lam Research CFO Doug Bettinger last week. Lam believes memory WFE spend is below “maintenance levels” or down 50% Y/Y in 2023 with NAND down more than DRAM (we think -75% Y/Y) and can only improve from the current low levels. Moreover, we believe Lam has the most “self-help” story coming out of the downturn as the company expands its broader Asia manufacturing footprint to structurally improve gross margins to 47-48% from current 44% once the growth resumes. Moreover, new products ramps like Dry Resist ($1.5B over five years), selective etch/spacer ALD for incremental $1B GAA/100k wsm opportunity, and the Sense.i platform should help with gross margins too. We see decelerating Q/Q memory price declines in 2Q/3Q as leading indicator of improving memory WFE sales and positive catalysts for the stock."

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 $527.10 yesterday.

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