Bank of America Comments on Lam Research

Bank of America has published a report on Lam Research LRCX forecasting the third quarter. In the report, Bank of America wrote, "„Focus to be on the recovery in shipments LRCX will report their June quarter (F4Q11) earnings on Wednesday (7/27) after the close. With the near-term reset in expectations for the group having already occurred during Semicon West (a few weeks ago) coupled with the lack of visibility beyond the September quarter, we expect the earnings to be largely a non-event. Given the lack of Intel exposure (top spender in C2H) and our view that the shipments for LRCX do not recover until 1H12 (since C2H11 wafer fab equipment run-rate below C1H11), we maintain our Underperform rating. We have argued for a while that LRCX could look into initiating a dividend this year; the management's commentary (during Semicon West) around being open to a dividend is a slight positive in our view." Bank of America rated Lam Research an Underperform with a price target of $44.00. Lam Research closed Monday at $44.02.