UPDATE: J.P. Morgan Initiates Coverage on Lam Research Corporation with Overweight Rating, $65 PT as Inflections in Semi Manufacturing Drive Capital Intensity, Growth Outlook

In a report published Monday, J.P. Morgan analyst Harlan Sur initiated coverage on Lam Research Corporation 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.