Evercore ISI Reiterates Outperform on Lam Research, $355 PT
Evercore ISI analyst Mark Lipacis reiterated an Outperform rating and $355 price target on Lam Research (NASDAQ: LRCX).
“Great Fundamentals, But Great Expectations – Wait to Add. The set-up for Semicap stocks and LRCX into 2Q earnings appears challenging, as YTD SCE are up 37%-to-137% and LRCX is +87% vs.
SPX up 10%, and our survey indicates most investors are overweight Semi-caps generally.
However, fundamental backdrop remains strong for the group and LRCX as 1) Agentic AI is DRAM and NAND intensive (see note) and LRCX is well-positioned to benefit from acceleration in NAND spend with ~37% exposure; 2) Street models LRCX’s 2026 product revs to grow 37%/32% (vs. our 2026/2027 WFE growth est of 40%/38%) – which we think could be conservative, as in 2017, 2020 and 2025 LRCX’s revs grew 11%/10% and 35% faster than WFE.
Key risk is valuation, LRCX trades at 39x; 80% premium to SPX – which leads us to believe the near-term positive fundamentals are largely baked-in.”
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