Decoding 11 Analyst Evaluations For Lam Research

In the last three months, 11 analysts have published ratings on Lam Research LRCX, offering a diverse range of perspectives from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $1060.18, a high estimate of $1325.00, and a low estimate of $774.00. A decline of 2.44% from the prior average price target is evident in the current average.

Investigating Analyst Ratings: An Elaborate Study

The standing of Lam Research among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Lam Research. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Lam Research compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Lam Research's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Lam Research's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Lam Research analyst ratings.

Unveiling the Story Behind Lam Research

Lam Research is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segments of deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear cut second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.

Unraveling the Financial Story of Lam Research

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Positive Revenue Trend: Examining Lam Research's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 20.71% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: Lam Research's net margin excels beyond industry benchmarks, reaching 26.35%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 12.32%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Lam Research's ROA excels beyond industry benchmarks, reaching 5.51%. This signifies efficient management of assets and strong financial health.

Debt Management: Lam Research's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.58, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Basics of Analyst Ratings

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.