Credit Suisse Raises Price Target On Lam Research

Credit Suisse raised its price target on Lam Research Corporation LRCX from $85 to $104 Tuesday and maintained an Outperform rating.

Analysts Farhan Ahmad and John W. Pitzer assumed coverage of the stock and noted that the “company has $2bn (40 percent of CY13 rev) of SAM expansion opportunity over the next three years, equating to incremental EPS of $2 (63 percent of CY13 EPS) driven by 3-D NAND, Multipatterning on DRAM and Logic, INTC share gain and TSV.”

Ahmad also viewed “outsized Memory exposure as an asset in the longer term and believe that investors are underestimating both slowing bits/wafer and incremental demand from Data Analytics.”

The analysts expected “the company to report Rev/EPS for F2Q15 (Dec) above Street estimates and to guide MarQ to Revenue/EPS of $1.37bn/$1.40, above the Street estimates of $1.33bn/$1.29. We also expect LRCX to indicate revenue growth for JunQ.”

The $104 price target represented 15x the firm’s CY15 EPS estimate, plus net cash of $8.

Lam Research Corporation closed at $78.50 Tuesday, up 1.19 percent.