UPDATE: J.P. Morgan Initiates Coverage on Lam Research as Inflections in Semi Manufacturing Drive Growth Outlook
In a report published Monday, J.P. Morgan analyst Harlan Sur initiated coverage on Lam Research Corporation (NASDAQ: LRCX) with an Overweight rating and $65.00 price target.
In the report, J.P. Morgan noted, “Initiating on LRCX at Overweight with Dec 2014 PT of $65. We believe process complexity on next-generation manufacturing nodes significantly increases the number of steps (etching, deposition, and cleaning), expanding LRCX's market opportunity by 12-13% to a $9bn market by 2015/16. Our $65 Dec 2014 price target assumes LRCX should trade at an average cross-cycle P/E multiple applicable during the expansion phase of WFE spend cycle or 15x our CY14E EPS of $4.35.”
Lam Research Corporation closed on Friday at $52.83.
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