Lam Research price target raised to $500 from $400 at Mizuho

Mizuho analyst Vijay Rakesh raised the firm’s price target on Lam Research (LRCX) to $500 from $400 and keeps a Buy rating on the shares. Wafer fab equipment, or WFE, while slowing, is buffered by strong backlogs, which should keep sales elevated as investors look ahead to 2024, said Rakesh. Despite estimating 2023 WFE spending to be down 20% year-over-year, he sees strong backlogs at Applied Materials (AMAT) and Lam propping up sales as they look to offset weakness tied to lower memory demand from U.S. original equipment makers by boosting sales to Korean manufacturers, the analyst tells investors.