Wolfe Research downgraded Lam Research (LRCX) to Peer Perform from Outperform without a price target. The firm cites Lam’s greater relative exposure to NAND for the downgrade. It has become “incrementally bearish” on NAND, with its view that Street estimates for 2025 and 2026 are too high. In addition, Lam trades at a 5-times premium to its closest comp, Applied Materials (AMAT), the analyst tells investors in a research note. The downgrade doesn’t anticipate share loss for Lam, but is rather a function of its market exposure, particularly to NAND, contends Wolfe. It believes the “structural problem is that there’s little chance” China NAND will slow tech migration, which is the part of the market Lam can’t address due to export controls.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on LRCX:
- Lam Research downgraded to Peer Perform from Outperform at Wolfe Research
- Lam Research price target lowered to $90 from $100 at Needham
- Lam Research price target lowered to $90 from $95 at Mizuho
- Early notable gainers among liquid option names on January 6th
- Nvidia’s (NVDA) Popularity Rises Among Fund Managers, According to BofA