TD Cowen Raises Lam Research Price Target to $290

TD Cowen analyst Krish Sankar raised the price target on Lam Research (NASDAQ: LRCX) to $290.00 (from $170.00) while maintaining a Buy rating.

“Impressive WFE Outlook: Earlier and Stronger Than Anticipated; C26 WFE outlook of $135B (23% Y/Y) was the key surprise, especially given cleanroom availability tightness.

China expected to be “flattish” this year while DRAM/leading-edge Foundry to outgrow NAND. LRCX also plans to outgrow WFE again this year (would be 3rd consecutive).

We model ~$7.30 in EPS for CY27 (8% higher than Street pre-print).

LRCX’s view of CY26 WFE growing 23% to $135B this year (vs our $120B est.) clearly implies an acceleration in revenue growth and close to $6 in earnings power this year (consensus $5.37, our new est. is $5.77).

With this year equipment spend being gated by cleanroom capacity (yet growing by 23% per LRCX’s view), and our checks indicating leading-edge foundry spending accelerating in CY27, we see path to high-teens % growth for LRCX in CY27, which brings potential earnings power to more than $7 per share (we model ~$7.30).”

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