UPDATE: KeyBanc Starts Lam Research (LRCX) at Sector Weight

January 25, 2022 4:10 PM EST
Get Alerts LRCX Hot Sheet
Price: $507.31 +1.96%

Rating Summary:
    21 Buy, 12 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 10 | Down: 23 | New: 34
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(Updated - January 25, 2022 4:21 PM EST)

KeyBanc analyst Steve Barger initiates coverage on Lam Research (NASDAQ: LRCX) with a Sector Weight rating.

The analyst comments "We believe LRCX’s differentiated, precision product offering in advanced deposition, etch, and cleaning processes should allow it to benefit from strong secular trends in the semiconductor industry. LRCX has strong competencies in nanoscale applications enablement, chemistry, plasma and fluidics, and advanced systems engineering, which makes it a critical partner to semiconductor manufacturers as they respond to demand for leading-edge and mature node memory and logic chips. Like its peer wafer fabrication equipment (WFE) manufacturers, we think LRCX will benefit from industry capacity additions to meet rising demand for increasingly advanced semiconductors across a wide range of applications including mobile phones, personal computers, servers, wearables, vehicles, data storage devices, and a variety of other electronic products. Additionally, given the importance of leading-edge semiconductors to both consumer and government/defense applications, we think countries and companies will push for strategic WFE diversification to ensure future supply availability, contributing to solid equipment demand visibility in the coming years. To be clear, we are not arguing that the industry will not exhibit cyclical revenue volatility as it has in the past, but we expect shallower cycles around broader, multiyear trends. Additionally, we expect LRCX will continue its R&D efforts toward designing and integrating differentiated hardware, software, material, and process control expertise at atomic scale, which should allow it to maintain or take share with semiconductor customers as they pursue more complex architectures and materials to help offset decreasing shrink efficiency. While we admire LRCX’s technology, market position, revenue growth, margin profile, and return on capital, we think the above positives are well reflected in the shares at the current valuation."

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 $621.82 yesterday.

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