In the preceding three months, 17 analysts have released ratings for Lam Research LRCX, presenting a wide array of perspectives from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 7 | 2 | 8 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 6 | 1 | 5 | 0 | 0 |
| 2M Ago | 1 | 1 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 1 | 0 | 0 |
Insights from analysts' 12-month price targets are revealed, presenting an average target of $878.76, a high estimate of $975.00, and a low estimate of $720.00. This upward trend is evident, with the current average reflecting a 16.14% increase from the previous average price target of $756.67.
Understanding Analyst Ratings: A Comprehensive Breakdown
A comprehensive examination of how financial experts perceive Lam Research is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| C J Muse | Cantor Fitzgerald | Maintains | Neutral | $900.00 | - |
| C J Muse | Cantor Fitzgerald | Maintains | Neutral | $900.00 | - |
| C J Muse | Cantor Fitzgerald | Maintains | Neutral | $900.00 | - |
| Mehdi Hosseini | Susquehanna | Raises | Neutral | $880.00 | $655.00 |
| Toshiya Hari | Goldman Sachs | Raises | Buy | $912.00 | $700.00 |
| Atif Malik | Citigroup | Raises | Buy | $975.00 | $800.00 |
| Vijay Rakesh | Mizuho | Raises | Buy | $935.00 | $900.00 |
| Brian Chin | Stifel | Raises | Buy | $950.00 | $850.00 |
| Toshiya Hari | Goldman Sachs | Raises | Buy | $912.00 | $700.00 |
| Srini Pajjuri | Raymond James | Raises | Outperform | $950.00 | $850.00 |
| Raimo Lenschow | Barclays | Raises | Equal-Weight | $825.00 | $750.00 |
| Charles Shi | Needham | Raises | Buy | $900.00 | $800.00 |
| C J Muse | Cantor Fitzgerald | Announces | Neutral | $830.00 | - |
| Srini Pajjuri | Raymond James | Raises | Outperform | $850.00 | $725.00 |
| Brian Chin | Stifel | Raises | Buy | $850.00 | $750.00 |
| Raimo Lenschow | Barclays | Raises | Equal-Weight | $750.00 | $600.00 |
| Joseph Moore | Morgan Stanley | Announces | Equal-Weight | $720.00 | - |
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 predict movements in price targets, offering estimates for Lam Research's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Lam Research's market standing. Stay informed and make well-considered 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, 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.
Lam Research's Economic Impact: An Analysis
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Negative Revenue Trend: Examining Lam Research's financials over 3 months reveals challenges. As of 31 December, 2023, the company experienced a decline of approximately -28.79% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Lam Research's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 25.39% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Lam Research's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 11.73%, the company showcases efficient use of equity capital and strong financial health.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 5.11%, the company showcases effective utilization of assets.
Debt Management: Lam Research's debt-to-equity ratio stands notably higher than the industry average, reaching 0.61. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Analyst Ratings: What Are They?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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