RBC Capital Raises Price Target Following Lam Research's (LRCX) 1Q16
RBC Capital reiterated an Underperform rating on Lam Research (NASDAQ: LRCX), and raised the price target to $56.00 (from $52.00), following the company's 1Q16 earnings results. Lam introduced CY16 WFE expectation of flat to down slightly, in line with consensus, but optimistic compared to our expectation of 13% decrease in total capex.
Analyst Mahesh Sanganeria commented, "While our near-term cyclical concerns remain intact, we believe that a combination of LRCX and KLAC will produce a strong company with significantly reduced earnings volatility and size comparable to or larger than AMAT and Tokyo Electron thereby positioning it even better to compete. We believe that we will see the full potential of combined company in 2018 and beyond."
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Shares of Lam Research closed at $70.79 yesterday.