Citigroup Maintains Buy, $58 Target on Lam Research

Citigroup reiterates its Buy rating and $58 target price on Lam Research LRCX as it sees no fundamental reasons for the share pullback. Citigroup says, "LRCX has traded down ~12% since announcement of the NVLS deal versus down ~2% for the SOXX index during the same period. While some adverse selling pressure was to be expected given typical risk/arb technicals around transactions, we are getting a lot of client calls asking why the stock has performed so poorly. At the end of the day, after many conversations with our trading desk and investors, we think this is simply a case where selling has resulting in more selling and this has relatively little to do with fundamentals per se." LRCX closed at $34.86 per share on Monday.