BofA Securities Raises Lam Research Price Target to $285
BofA Securities analyst Vivek Arya raised the price target on Lam Research (NASDAQ: LRCX) to $285.00 (from $245.00) while maintaining a Buy rating.
“We view LRCX’s solid beat and raise as the start of an accelerating growth trajectory inside a massive, multi-year WFE cycle.
Off a $110bn CY25 base, CY26 WFE is guided to $135bn (+23% YoY), ~$4bn ahead of our estimate, with continued growth across foundry/logic (F/L), DRAM, and NAND weighted in 2H.
This establishes a strong baseline industry growth rate off which we expect LRCX to gain further share led by NAND ($40bn upgrades pulling in) and leading-edge F/L after picking up 1ppt of share in CY25.
Critically, incremental growth is ex-China driven (China WFE flat YoY) which we see as more sustainable and higher quality upside.
Easing customer capacity constraints could unlock similarly strong growth in CY27.
Enabling these gains are LRCX’s differentiated etch/dep products that are more favored as spending mix shifts towards inflections like GAA, BSPD, HBM, and 4F2 DRAM.
We materially raise our CY26/27E pf-EPS by 19%/18% to $5.94/$6.94.
Despite strong recent share price appreciation and re-rating, we believe there is potential of $9-10 earnings power by CY28/29E assuming Systems grows to ~$25bn and CSBG tracks a DD CAGR.”
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