UPDATE: DA Davidson Initates Lam Research at Buy on Novellus Acquisition

DA Davidson initiated coverage on Lam Research

with a Buy rating and a $56 price target. DA Davidson noted, "Over the past decade Lam's technology prowess has enabled it to become the premier Etch player. Today, Lam's extensive etch, clean and deposition product portfolio is positioned to benefit from a number of industry trends that should drive share gains and earnings growth over the next few years. … Novellus acquisition adds scale and cost synergy opportunities. The $3.1 billion acquisition meaningfully expands Lam's product portfolio and provides revenue growth and synergistic opportunities in the years ahead. The guided $100 million annualized savings exiting 2013 could prove to be conservative." Lam Research closed at $36.13 on Monday.