UPDATE: Citigroup Reduces PT to $39 on Lam Research Corporation

Citigroup reiterated its Buy rating on Lam Research Corporation

but reduced its price target from $61 to $39 a share following reduced estimates. Citigroup said, "Much like its peers, LRCX conveyed caution on the 2H12 wafer fab equipment environment (WFE) and lowered its 2012 WFE forecast to the low end of its prior $30-32B range. Lam sees more risk in NAND spending in 2H and expects foundry shipments to trend flat to up in the Dec-Q. Over the next 3-to-5 years, Lam expects to outgrow the WFE market through share gains in etch (3-5%), clean (5-10%) and now also deposition (4-8%) with NVLS in tow." Lam Research Corporation closed at $34.24 on Wednesday.