Lam Research A 'Top Pick' For These Credit Suisse Analysts

In a report published Tuesday, analysts at Credit Suisse maintain their Outperform rating on Lam Research Corporation LRCX. The price target has been raised from $102 to $105. The analysts continue to rate the company as a Top Pick following Lam Research's robust "beat and raise" quarter. The company beat the consensus and analyst C1H15 EPS expectations. "In addition, strong C1H15 shipments imply that even with 10-15% H/H decline in C2H15 shipments, LRCX will beat street revenues/EPS estimates in C2H15," the analysts said. Lam Research reiterated its 205 WFE of $34 billion, while stating that the higher 3D NAND and CMOS sensor spend was offsetting its Foundry/logic cuts. The company also reported an increase in 3D NAND capex, which is expected to help double NAND revenues from about $1 billion per year in 2013-2014 to about 2 billion in 2016-2017. Lam Research also reported its gross margins above the guidance and consensus, driven by better utilization, which in turn was led by higher shipments. "We continue to maintain LRCX as our top pick and expect the Company to outperform peers over next 3 years, driven by higher exposure to growth segments of WFE, namely (i) 3D NAND (ii) Multi-patterning, and (iii) TSV," the analysts explained.