RBC Capital downgraded Lam Research (NASDAQ: LRCX) from Sector Perform to Underperform with a price target of $52.00 (from $76.00).

Analyst Mahesh Sanganeria commented, "We estimate CY16 total capex will be down 13% yoy to $46B, driven by 38% decline in DRAM capex, 17% drop in NAND spending, flattish foundry investment and 3% growth in IDM. In our opinion, DRAM spending is positioned to decline in 2016 after two years of high level spending on new capacity and 20nm conversion. 3D NAND in CY16 appears to be limited after Samsung filled up Xi'an fab with 90k capacity as Micron and Toshiba need to expand current fabs for 3D conversion. We model 38% decline in DRAM and 17% drop in NAND capex in CY16. We estimate flattish foundry spending and 3% growth in IDM for CY16, as we believe IDM/foundry spending will likely remain muted until 10nm ramp."

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 $65.68 yesterday.