Needham & Company Maintains a 'Buy' on Lam Research (LRCX); Foundry Strength, But Modest Outlook
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Price: $314.00 +1.12%
Rating Summary:
33 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
Rating Summary:
33 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 6 | New: 26
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Needham & Company maintains a 'Buy' on Lam Research (NASDAQ: LRCX) price target of $50.00.
Analyst, Y. Edwin Mok, said, "LRCX reported strong F3Q12 (Mar) results but provided guidance that is slightly below consensus due to the high customer concentration impacting gross margins. Commentary confirmed improvement of foundry/logic orders but memory remains challenging, resulting in a flattish 2H12 outlook. We believe the lack of upside is disappointing, but as its merger with Novellus (Nasdaq: NVLS) (Buy) closed, we anticipate incremental product and cost savings to start coming through in the model. Longer term, we believe LRCX will see a better revenue growth trajectory in etch and clean than its peers, and operating leverage should return, driving earnings power of $4+ in FY13 and beyond."
FY12 EPS estimate cut from $2.18 to $2.11 and FY13 from $3.33 to $3.12.
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 $42.04 yesterday.
Analyst, Y. Edwin Mok, said, "LRCX reported strong F3Q12 (Mar) results but provided guidance that is slightly below consensus due to the high customer concentration impacting gross margins. Commentary confirmed improvement of foundry/logic orders but memory remains challenging, resulting in a flattish 2H12 outlook. We believe the lack of upside is disappointing, but as its merger with Novellus (Nasdaq: NVLS) (Buy) closed, we anticipate incremental product and cost savings to start coming through in the model. Longer term, we believe LRCX will see a better revenue growth trajectory in etch and clean than its peers, and operating leverage should return, driving earnings power of $4+ in FY13 and beyond."
FY12 EPS estimate cut from $2.18 to $2.11 and FY13 from $3.33 to $3.12.
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 $42.04 yesterday.
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