Piper Jaffray Remains Bullish on Lam Research (LRCX) as Technology Inflections Continue

Piper Jaffray reiterated an Overweight rating and $94.00 price target on Lam Research (NASDAQ: LRCX) as technology inflections across a number of product areas continue. While investor concerns over the trajectory of WFE spending in 2016 will likely continue, LRCX has illustrated its ability to grow faster than peers given the combination of technology driven SAM expansion, coupled with market share gains.

Analyst Ruben Roy commented, "We continue to view LRCX as the best positioned semicap equipment company as technology inflections across a number of product areas continue. While investor concerns over the trajectory of WFE spending in 2016 will likely continue, LRCX has illustrated its ability to grow faster than peers given the combination of technology driven SAM expansion, coupled with market share gains. We remain positive on the outlook for memory spending, longer-term. While 2016 memory capex could decelerate, conversions to 3D NAND and 20nm and sub-20nm planar DRAM remain in early stages. LRCX shares trade at 10.4x consensus 2016 EPS versus a 14.9x average for equipment peers and a 16.6x average for the broader semiconductor universe. We believe that downside is limited from current levels and expect acceleration of 3D NAND capacity in 2016 to potentially drive upside to the share price. We reiterate our OW rating and $94 PT."

For an analyst ratings summary and ratings history on Lam Research click here. For more ratings news on Lam Research click here.

Shares of Lam Research closed at $65.42 yesterday.

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