Wells Fargo Upgrades Lam Research to Overweight
Wells Fargo analyst Joseph Quatrochi upgraded Lam Research (NASDAQ: LRCX) from Equal Weight to Overweight with a price target of $250.00 (from $145.00).
“Lam Research: Upgrading to Overweight ($250 PT): We upgrade Lam Research to Overweight from Equal Weight as we believe shares will continue to outperform as memory supply / demand dynamics will increasingly support the need for more capacity additions.
While we increase our estimates to above consensus, we will be focused on continued upward estimate drivers including: 1) Positioning for NAND Upgrades.
While we expect Lam to reiterate that its estimated $40B of incremental spending on NAND to upgrade >2XXL will play out over multiple years, increasing tightness in the NAND industry will leave focused on an acceleration in 2026 / 2027.
As a reminder, Lam’s SAM addresses 2/3rds of this spend with the company holding a significantly high share. 2) Leading Edge Foundry / Logic Momentum; BSPD = Content Oppy.
We think visibility into Lam’s positioning in leading edge foundry / logic will continue to increase as the industry looks to adopt backside power delivery (BSPD) in 2026.
As a reminder, this requires copper plating where Lam is a market leader. 3) Advanced Packaging.
We expect the company to continue to report momentum in advanced packaging, in part driven by HBM DRAM capacity expansion. 4) Easing CSBG Comps in 2026.
With Reliant weakness (trailing edge / China) in 2025 negatively impacting Lam’s CSBG growth, we expect the company to report an acceleration of revenue growth in C2026, driven by rising fab utilization and continued system upgrades.
We raise our C2026, C2027, and C2028 revenue / EPS estimates to $22.73B / $5.19, $25.95B / $6.34, and $26.98B / $6.70 (vs. prior $21.26B / $4.83, $22.37B / $5.09, and $24.46B / $5.83).
Our C2025 estimates of $20.47B / $4.82 remain unchanged. We increase our PT to $250 (was $145) based on 35x P/E and 30x EV/EBITDA our C2027 estimates.”
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