Cracking The Code: Understanding Analyst Reviews For Lam Research

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In the last three months, 19 analysts have published ratings on Lam Research LRCX, offering a diverse range of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 9 2 8 0 0
Last 30D 1 0 0 0 0
1M Ago 7 2 3 0 0
2M Ago 0 0 2 0 0
3M Ago 1 0 3 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $1011.58, a high estimate of $1200.00, and a low estimate of $850.00. Surpassing the previous average price target of $935.77, the current average has increased by 8.1%.

Analyzing Analyst Ratings: A Detailed Breakdown

The perception of Lam Research by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Blayne Curtis Jefferies Raises Buy $1100.00 $980.00
Atif Malik Citigroup Raises Buy $1025.00 $975.00
Blayne Curtis Barclays Raises Equal-Weight $865.00 $825.00
Krish Sankar TD Cowen Raises Buy $1000.00 $975.00
Harlan Sur JP Morgan Raises Overweight $950.00 $900.00
Vijay Rakesh Mizuho Raises Buy $960.00 $935.00
Timothy Arcuri UBS Raises Buy $1150.00 $1130.00
C J Muse Cantor Fitzgerald Maintains Neutral $1100.00 -
Charles Shi Needham Maintains Buy $1030.00 -
Mehdi Hosseini Susquehanna Lowers Neutral $850.00 $880.00
Charles Shi Needham Raises Buy $1030.00 $900.00
Brian Chin Stifel Raises Buy $1050.00 $950.00
Mark Lipacis Evercore ISI Group Announces Outperform $1200.00 -
C J Muse Cantor Fitzgerald Raises Neutral $1100.00 $900.00
Joseph Quatrochi Wells Fargo Raises Equal-Weight $980.00 $930.00
C J Muse Cantor Fitzgerald Maintains Neutral $900.00 -
Timothy Arcuri UBS Raises Buy $1130.00 $885.00
C J Muse Cantor Fitzgerald Maintains Neutral $900.00 -
C J Muse Cantor Fitzgerald Maintains Neutral $900.00 -

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Lam Research. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Lam Research compared to the broader market.
  • Price Targets: Analysts predict movements in price targets, offering estimates for Lam Research's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Lam Research's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Lam Research analyst ratings.

Delving into Lam Research's Background

Lam Research is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segments of deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear cut second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.

Key Indicators: Lam Research's Financial Health

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Challenges: Lam Research's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -1.96%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Lam Research's net margin excels beyond industry benchmarks, reaching 25.46%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Lam Research's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 11.89%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Lam Research's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 5.21%, the company showcases efficient use of assets and strong financial health.

Debt Management: Lam Research's debt-to-equity ratio stands notably higher than the industry average, reaching 0.62. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: What Are They?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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