FINWIRES · TerminalLIVE
FINWIRES

Lam Research Likely to Benefit from Healthy Wafer Fabrication Equipment Landscape, RBC Says

-- Lam Research (LRCX) is likely to benefit from healthy wafer fabrication equipment environment for the next two to three years driven by generative AI demand and memory tightness, RBC Capital Markets said in a Wednesday research report.

The brokerage said it raised its fiscal 2026 and 2027 EPS guidance to $5.65 and $7.72, respectively, from $5.30 and $6.84 earlier.

The company's fiscal Q3 beat was particularly driven by strength in DRAM and improving NAND outlook amid continued momentum in high bandwidth memory, analysts wrote.

China exposure declined during the quarter, and the company expects further declines as global spending accelerates, but overall, China demand remains steady, according to the note.

RBC reiterated its outperform rating on the stock and boosted its price target to $310 from $290.

Price: $261.88, Change: $-3.68, Percent Change: -1.38%

Related Articles

Equities

ONEOK Keeps Quarterly Dividend at $1.07 a Share, Payable May 15 to Holders of Record May 4

$OKE
Research

Research Alert: Sap: Q1 Performance Boosted By Cloud Strength Though Outlook More Uncertain

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:SAP reported Q1 non-IFRS EPS of EUR1.72, up 20% and beating consensus by EUR0.06, while revenue of EUR9.56B grew 6% (12% constant currency), exceeding expectations by EUR10M. Cloud revenue of EUR5.96B accelerated to 27% constant currency growth, with Cloud ERP Suite delivering EUR5.21B (+30% constant currency). However, management expects Q2 deceleration due to quarter-specific effects. SAP's cloud momentum signals strong demand with current cloud backlog of EUR21.9B (+25% constant currency). Operating margin expanded to 30.0% from 27.2% in Q1 2025, supported by disciplined cost management. FCF of EUR3.25B was impacted by a EUR408M Teradata settlement but underlying cash generation remains robust. We view the EUR10B share buyback program positively, with EUR2.6B completed in the first tranche. Management reaffirmed 2026 cloud revenue targets of EUR25.8B-EUR26.2B and operating profit of EUR11.9B-EUR12.3B, but adopted a more conservative total revenue growth outlook citing macroeconomic uncertainty.

$SAP
Research

Research Alert: CFRA Keeps Strong Buy Opinion On Shares Of Nasdaq, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Following strong Q1 results and accounting for economic uncertainty, we reduce our 12-month target price by $15 to $120, applying a forward P/E of 27.0x our 2027 EPS estimate, above NDAQ's five-year average forward P/E of 23.5x, given continued wins in financial crime and momentum in the Index segment. We increase our 2026 EPS estimate by $0.03 to $3.98 and raise 2027's by $0.18 to $4.44. NDAQ is firing on all cylinders with no signs of AI disrupting its strong competitive moat. In fact, performance is accelerating. The company posted its strongest Q1 organic growth since 2021 across net revenue, solutions revenue, and operating income. Record revenue growth in Financial Technology was particularly encouraging as we have long argued that NDAQ holds a competitive advantage with Verafin and its industry leading anti-financial crime solutions. Momentum is building in Verafin, which added 58 new small and medium bank clients in Q1, a 24% Y/Y increase, signaling a bright outlook ahead.

$NDAQ