Citi Previews FQ3:11 Earnings For LRCX

Citi, previewing FQ3:11 earnings for Lam Research Corp. LRCX, is maintaining its Sell rating and price target of $43 on the stock. Says Citi, in the report, “Stock has come down 10% since we reported Samsung pushout two weeks ago. Given increasing uncertainty in end-market demand that could cause chain-reaction in foundry spending, we see more downside risks in the near term. Given an upcoming order/shipment correction all but certain, we maintain our Sell rating and $43 target on 12x normalized EPS of $3.60.” LRCX closed at $50.99 yesterday.