Lam Research Poised For 'Solid Start To The Year' As 3 Analysts Discuss Q4 Print

Shares of Lam Research Corporation LRCX spiked in early trading on Thursday, after the company reported upbeat quarterly results.

The report came amid an exciting earnings season. Here are some key analyst takeaways from the earnings release.

• Bernstein analyst Stacy Rasgon reiterated a Market Perform rating, while lifting the price target from $500 to $550.
• KeyBanc Capital Markets analyst Steve Barger maintained a Sector Weight rating on the stock.
• Needham analyst Quinn Bolton reiterated a Hold rating on the stock.

Check out other analyst stock ratings.

Bernstein

Lam Research reported “solid” results for its fiscal fourth quarter, Rasgon said in a note. “Systems beat ($1.71B v Street at $1.63B, with incremental upside from China trailing node as well as HBM memory), with CSBG revenues in-line at $1.50B,” he added.

The company’s gross margins came in higher than expected, “on the back of cost savings and favorable mix,” the analyst stated. “FQ124 guidance was also good with upside from domestic China spending and increasing HBM demand."

KeyBanc Capital Markets

“With respect to the cycle, LRCX maintained a cautious tone and for CY23 sees memory down mid-40% and non-memory down ~10%,” Barger wrote. “Even so, LRCX discussed pockets of strength like HBM, Advanced Packaging, and China, which allowed it to increase its WFE forecast modestly to the mid-$70B level, slightly weighted to the back half."

The analyst projected a “solid start to the year,” while added that fiscal 2024 estimates are likely to be raised.

Needham

Lam Research reported better-than-expected quarterly results, although sales declined by 17% sequentially. The company’s guidance for the fiscal first quarter was above expectations, “and implied the June quarter will be the bottom,” he added.

Lam Research raised its “2023 WFE outlook to the mid-$70bn range, driven by the strength of the China domestic and HBM markets,” the analyst wrote. “Management does not see any near term recovery in memory spending."

LRCX Price Action: Shares of Lam Research had risen by 8.57% to $697.43 at the time of publishing Thursday.

Image: LamResearch.com