Piper Jaffray Remains Bullish on Lam Research (LRCX) Following Investor Meetings
Piper Jaffray reiterates an Overweight rating and $94.00 price target on Lam Research (NASDAQ: LRCX) following investor meetings. Analyst Ruben Roy says that the company continues execution on targeting inflection-based WFE spending, and views LRCX as the best positioned semi-cap equipment company.
Roy commented, "We continue to view LRCX as the best positioned semi-cap equipment company over the next 12-18 months given the company’s continued execution on targeting inflection-based WFE spending. At its annual investor meeting, management highlighted continued progress towards its three year operational targets. SAM increased to 27.5% of overall WFE spending in 2014 from 26.5% in 2013 and the company expects investments in new products to increase its SAM to roughly 32% by fiscal 2018. Extending its outlook to 2018, LRCX now sees $3B+ market expansion opportunity versus its previous target of $2B through FY2017. Along with this update, the company raised its operational targets and forecasts to a potential revenue range of $6.5-7.0B on a WFE environment of ~$35B in the 2017-2018 time frame. LRCX forecasts non-GAAP EPS of $7.00-7.75 with operating margin of 23% in this scenario. OW rating and $94 PT."
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 $79.85 yesterday.