Cantor Fitzgerald Reiterates Overweight Rating on Lam Research (April 23)

Cantor Fitzgerald analyst C.J.

Muse reiterated an Overweight rating and $320.00 price target on Lam Research (NASDAQ: LRCX).

“Supported by a robust demand environment led by AI, partially offset by a lack of clean room space availability, Lam offered a strong beat and raise, raising its CY26 WFE outlook to $140B+ from $135B (27+% vs. prior 23%), and offered a very favorable outlook for CY27.

Specific to Lam, we highlight excellent leverage to the faster-growing etch and deposition end markets, enabling the company to grow far better than the industry, where we continue to see stretch tool revenue growth of 40% in CY26 (very well levered to TSMC/Samsung Taylor/AP, DRAM/HBM, and NAND (~40-50% share of wallet on upgrades)).

Perhaps most importantly, mgmt offered a very favorable view on growth into 2027, considering today’s robust end-market demand, coupled with a constrained clean room environment – suggesting “compelling 2027 WFE growth.” Specific to Lam, we highlight very strong CSBG revenue contributions (including service, upgrades, spares) as well as a very robust GM guide of 50.5% for the June Q (notwithstanding reduced contributions from China).

We note this exceeds the company’s 2028 target model and reinforces the company’s strong operational excellence led by lower-cost Malaysian fab coupled with higher margins associated with Lam’s new, more value-add product offerings.

Put it all together and this was an excellent report. We raise our estimates and continue to point to stretch goal earnings power of $10 in CY27 (cons $7.78) and $12 in CY28 (cons $8.86).

We reiterate our Overweight rating and $320 price target.”

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.