UPDATE: Bank Of America Reiterates On Lam Research On Positive Outlook

In a report published Monday, Bank of America analyst Krish Sankar reiterated a Buy rating on

, and raised the price target from $80.00 to $92.00. In the report, Bank of America noted, “We think Lam is likely to outperform its peers this cycle due to its strong position in deposition and etch as well as the exposure to memory manufacturers. We expect shipments to start improving as the cycle strengthens next year. Our price objective of $92 is based on 17x CY15E EPS, a multiple in line with KLAC. We estimate LRCX's peak earnings could be around $8.00 next cycle. As a cyclical stock we apply a trough multiple (11x) on our peak earnings estimate to also arrive at our $92 price objective. The upside to our PO would be driven by stronger-than-expected electronics demand that would tighten up semiconductor capacity, driving increased semiconductor equipment sales and/or increasing market share. Downside risks involve slower than expected capital spending cycle, delay in memory capacity adds, market share loss in etch or clean segments, and macro headwinds.” Lam Research closed on Friday at $84.30.