UPDATE: Citigroup Downgrades Lam Research Corporation to Neutral, Lowers PT

In a report published Wednesday, Citigroup downgraded its rating on Lam Research Corporation

from Buy to Neutral, and lowered its price target from $39.00 to $34.00. Citigroup noted, “We downgrade LRCX to Neutral from Buy and reduce our target to $34 from $39 on lower estimates. Positives: a) valuation remains un-heroic, b) LRCX is a year-to-date underperformer, and c) any memory spending improvement could disproportionately reward LRCX. Negatives: a) Street may have to calibrate OpEx higher after LRCX's 11/8 analyst day, b) shift to TSMC from Samsung could be negative – we estimate LRCX holds 65% etch share at Samsung but 40-50% etch share at TSMC.” Lam Research Corporation closed on Tuesday at $33.70.