Analyst Scoreboard: 13 Ratings For Lam Research

In the preceding three months, 13 analysts have released ratings for Lam Research LRCX, presenting a wide array of perspectives from bullish to bearish.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Lam Research, presenting an average target of $1012.85, a high estimate of $1200.00, and a low estimate of $774.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 6.44%.

Breaking Down Analyst Ratings: A Detailed Examination

The analysis of recent analyst actions sheds light on the perception of Lam Research by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Lam Research. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Lam Research compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Lam Research's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Lam Research's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Lam Research analyst ratings.

Delving into Lam Research's Background

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.

Breaking Down Lam Research's Financial Performance

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Lam Research showcased positive performance, achieving a revenue growth rate of 20.71% as of 30 June, 2024. This reflects a substantial increase in the company's 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 26.35%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Lam Research's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 12.32%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Lam Research's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.51% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.58, caution is advised due to increased financial risk.

What Are Analyst Ratings?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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