Research Alert: CFRA Maintains Buy Rating On Shares Of Lam Research Corporation
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lift our price target by $42 to $356, 33.5x our FY 28 EPS view ($10.63), above LRCX's three-year average (~20x) given growing AI tailwinds across logic/memory/packaging. We keep our FY 26 EPS view at $5.72, raise FY 27's by $0.17 to $8.25 and raise FY 28's by $0.18 to $10.63. Our target increase owes to strong results across the semi/semi equip space during this earnings cycle and growing hyperscaler capex forecasts, which is bumping up our WFE views (now expecting $155B in 2026 from a prior view of $140B). We also note a rapid pace of NAND price increases (up 5-10x YTD), creating a supportive pricing environment that should drive an improving outlook for utilization/upgrade spending as companies look to maximize existing cleanroom space. We remind investors that LRCX recently accelerated its $40B NAND upgrade spending forecast from "several years" to YE CY 27. Greenfield equipment sales will still need to wait for new fabs to be built (more of a FY 28 story), but upgrades offer faster revenue realization.
