UPDATE: Goldman Sachs Moves to Neutral with $38 PT on Lam Research Corporation on Capex Concerns

Goldman Sachs moves from Not Rated to Neutral on Lam Research Corporation LRCX and establishes a price target of $38 on shares. Goldman Sachs comments, "While Neutral rated on the stock we have a positive long-term outlook on the company as: (1) We expect the Novellus acquisition to be accretive, and we believe Lam could achieve cost synergies beyond the $100 mn per year objective exiting 2013 that the company is targeting given management's experience with restructuring Lam's operations and integrating SEZ; (2) Lam is likely to eventually add Intel as an etch customer given Novellus' historical relationship with Intel in deposition. This would represent upside potential to our current estimates; (3) Lam has above average exposure to NAND, a market that is currently very weak but has some potential to improve in 2013." LRCX closed at $37.32 on Tuesday.