Barclays Reiterates an 'Overweight' on Lam Research (LRCX); M&A Continues with Acquisition of NVLS
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Price: $332.36 -1.38%
Rating Summary:
33 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
33 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays reiterates an 'Overweight' on Lam Research (NASDAQ: LRCX) price target of $46.00.
Barclays analyst says, "While LRCX shares may come under pressure near-term given the all-stock bid, we like this transaction as we believe it sets the path for meaningful share gains as increasingly more complex semiconductor manufacturing benefits from the combination of the best of breed tools from LRCX/Novellus (Nasdaq: NVLS). We see pro-forma combined EPS of ~$4.40, which means LRCX shares at $39 post-close remain inexpensive."
"Key Takeaways: 1) Acquisition is a continuation of LRCX's adjacent strategy with no product overlap w/LRCX offering leadership in Etch and Clean, while NVLS is a leader in Thin Film Deposition and Surface Preparation (expect little anti-trust risk); 2) Highly complimentary from a customer perspective -- LRCX strong at Foundry/Memory, while NVLS strong at Intel Corp (Nasdaq: INTC); 3) ~$100M synergies exiting CY13; 4) Management team led by Martin Anstice (LRCX - CEO), Tim Archer NVLS - COO), and Ernie Maddock (LRCX - CFO); 5) no comment on competing bidders, but we could see interest here."
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 $39.48 yesterday.
Barclays analyst says, "While LRCX shares may come under pressure near-term given the all-stock bid, we like this transaction as we believe it sets the path for meaningful share gains as increasingly more complex semiconductor manufacturing benefits from the combination of the best of breed tools from LRCX/Novellus (Nasdaq: NVLS). We see pro-forma combined EPS of ~$4.40, which means LRCX shares at $39 post-close remain inexpensive."
"Key Takeaways: 1) Acquisition is a continuation of LRCX's adjacent strategy with no product overlap w/LRCX offering leadership in Etch and Clean, while NVLS is a leader in Thin Film Deposition and Surface Preparation (expect little anti-trust risk); 2) Highly complimentary from a customer perspective -- LRCX strong at Foundry/Memory, while NVLS strong at Intel Corp (Nasdaq: INTC); 3) ~$100M synergies exiting CY13; 4) Management team led by Martin Anstice (LRCX - CEO), Tim Archer NVLS - COO), and Ernie Maddock (LRCX - CFO); 5) no comment on competing bidders, but we could see interest here."
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 $39.48 yesterday.
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