Stifel Raises Lam Research Price Target to $425

Stifel analyst Brian Chin raised the price target on Lam Research (NASDAQ: LRCX) to $425 (from $325) while maintaining a Buy rating.

“F4Q(Jun) – We expect Lam to exceed our estimates; we model system revenue $4.6B (+23% QQ) and CSBG (service/spares/upgrades) revenue $2.1B (flattish QQ).

Flat CSBG revenue could prove conservative given customers’ focus on productivity-enhancing equipment upgrades along with growth in Lam’s installed base.

F1Q(Sept) – Our estimates are above consensus, reflecting our conviction that LRCX could achieve system revenue growth of at least low-40% YY, above peers.

We are also optimistic that a more favorable semicap ASP environment can provide a moderate GM tailwind into calendar 2H/beyond (we model Sept GM flat at 50.5%).”

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