Rating
Buy
Price target
$330
Previous
$285
Implied upside
+24%

BofA Securities analyst Vivek Arya raised the price target on Lam Research (NASDAQ: LRCX) to $330.00 (from $285.00) while maintaining a Buy rating.

“Lam Research (LRCX) reported a solid 2%/8% sales/pf-EPS beat and even better 9%/14% ahead for the JunQ guide.

Gross margins also upsided nicely by~100bps, now back to 50.5%, as mix and efficiency gains worked favorably despite worsening mix (i.e. lower China).

As visibility improves, customers are now discussing CY28 plans with confidence further reinforced by memory suppliers’ LTAs.

CY26 WFE now $140bn (from $135bn) as incremental cleanroom space comes online, but LRCX should unlock materially faster growth on robust execution, favorable portfolio (etch/dep), and accelerating share gains after strong progress in CY25.

We believe LRCX should continue to outgrow industry and take share in leading-edge logic, DRAM, but also, NAND, where it has been able to expand meaningfully despite relatively more muted benefits for peers – and this is before greenfield NAND (higher content) hits 2H27/CY28.

Gross margins sustainable above 50%, but real leverage emerges with OpMs grinding from mid-30% to 40% LT.

Taken together, if semis grows to $2.1tn in sales, we see $14-$28 LT EPS power depending on intensity at reasonable WFE share assumptions (Exhibit 1), +40-170% above our new ~$10 CY28E EPS.

We raise CY26/27E EPS by 12%/33% to $9.21/$10.31. Raise PO to $330 (from $285), now on 36x CY27E PE (vs. 41x prior) as some growth has been realized.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.

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