Morgan Stanley Upgrades Lam Research to Overweight

Morgan Stanley analyst Shane Brett upgraded Lam Research (NASDAQ: LRCX) from Equalweight to Overweight with a price target of $331.00 (from $293.00).

“We’ve preferred DRAM WFE exposure over NAND WFE given the relative revisions, and hence have preferred AMAT over LAM.

The magnitude of our DRAM WFE revisions have narrowed, we’re more positive on NAND WFE revisions from here.

We revise up our CY27 forecast for LAM from $34.6bn/$9.46 to $35.4bn/$9.71 as we now model 59% NAND systems growth, surpassing prior peak in 2021.

We had valued LAM at 31x vs AMAT at 28x, approx. a 10% premium to reflect our confidence on AMAT’s 2026 share gains.

Given our confidence on LAM’s 2027 share gains, we raise that premium to 20%, a touch above the 3-year average of 16%, which brings up our target multiple to 34x and raises our price target from $293 to $331 implying 16% upside.”

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