Citi on Lam Research (LRCX): 'our #1 equipment pick'

Citi analyst Atif Malik reiterated a Buy rating and $1,025.00 price target on Lam Research (NASDAQ: LRCX).

The analyst comments "Lam Research announced on May 21 that the Board of Directors approved a $10Bn share repurchase plan, supplementing the $1.2Bn remaining balances from prior authorizations as of Mar-Q. We note that Lam announced buybacks plan three times from Jan 2019 to May 2022 with $5Bn each, and the step-up amount shows the company’s confidence in the business, strong ability of generating cash flow, and commitment to return 75%-100% of FCF to shareholders through buybacks and dividends. The company generated FCF of $4.9Bn in CY23 and returned ~80% to shareholders (75%/25% buyback/dividends), and has been increasing dividends every year over the past 10 years. Lam also announced a 10-for-1 stock split effective AMC on 10/2/2024. While there are no fundamental changes, the stock split will benefit employees globally to participate in company stock ownership plans and boost trading liquidity. We maintain our Buy rating and LRCX is our #1 equipment pick."

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 $942.04 yesterday.

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