Lam Research (LRCX) PT Raised to $105 at KeyBanc

KeyBanc analyst Steve Barger raised the price target on Lam Research (NASDAQ: LRCX) to $105.00 (from $95.00) while maintaining a Overweight rating.

The analyst comments: "LRCX presented a strategic and operational roadmap to 2028, which it expects will double revenue and EPS to $26B and $6.50, respectively, and it also provided a framework that contemplates $30B+ revenue and $8 EPS when the semiconductor industry reaches $1T. LRCX expects it will achieve that 2028 roadmap via expanding SAM faster than WFE, gaining share at technology inflections, and growing CSBG revenue faster than the installed base. We think the roadmap could be achievable as technology shifts toward more vertical architectures, increasing demand for process tools that meet LRCX’s strengths in deposition and etch, which is in line with our upgrade thesis from January. We estimate the CY26-CY28 roadmap assumes a low-teens percentage revenue CAGR at a mid-40% incremental margin. We don’t expect reality will follow this simple extrapolation but do think the cycle could be a tailwind, and if investors see directional progress, it could lead to positive EPS revisions and multiple expansion."

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