Analyst Expectations For Lam Research's Future

Lam Research LRCX underwent analysis by 14 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have set 12-month price targets for Lam Research, revealing an average target of $94.43, a high estimate of $125.00, and a low estimate of $75.00. Witnessing a positive shift, the current average has risen by 0.99% from the previous average price target of $93.50.

Decoding Analyst Ratings: A Detailed Look

In examining recent analyst actions, we gain insights into how financial experts perceive Lam Research. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Vivek Arya |B of A Securities |Lowers |Buy | $90.00|$110.00 | |Brian Chin |Stifel |Lowers |Buy | $92.00|$100.00 | |Timothy Arcuri |UBS |Lowers |Buy | $90.00|$95.00 | |Ed Yang |Oppenheimer |Lowers |Outperform | $80.00|$95.00 | |Blayne Curtis |Jefferies |Raises |Buy | $100.00|$95.00 | |Mehdi Hosseini |Susquehanna |Raises |Positive | $125.00|$75.00 | |Vijay Rakesh |Mizuho |Raises |Outperform | $100.00|$87.00 | |Matthew Prisco |Cantor Fitzgerald |Maintains |Overweight | $100.00|$100.00 | |Matthew Prisco |Cantor Fitzgerald |Maintains |Overweight | $100.00|$100.00 | |Matthew Prisco |Cantor Fitzgerald |Raises |Overweight | $100.00|$95.00 | |Joseph Quatrochi |Wells Fargo |Raises |Equal-Weight | $85.00|$82.00 | |Charles Shi |Needham |Maintains |Buy | $90.00|$90.00 | |Steve Barger |Keybanc |Maintains |Overweight | $95.00|$95.00 | |Tom O'Malley |Barclays |Lowers |Equal-Weight | $75.00|$90.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction 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 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.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Lam Research's market standing. Stay informed and make data-driven decisions with 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 manufacturers in the world. It specializes in 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 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: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: Lam Research's remarkable performance in 3M is evident. As of 31 December, 2024, the company achieved an impressive revenue growth rate of 16.44%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Lam Research's net margin is impressive, surpassing industry averages. With a net margin of 27.22%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Lam Research's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 13.79%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Lam Research's ROA stands out, surpassing industry averages. With an impressive ROA of 6.05%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.57, caution is advised due to increased financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

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.

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