UBS Group Cuts Lam Research (NASDAQ:LRCX) Price Target to $425.00

Key Points

• UBS Group lowered its Lam Research price target to $425 from $435 while maintaining a “buy” rating, implying approximately 45.7% upside from the reported $291.77 share price.
• Analyst sentiment remains broadly positive, with Lam Research holding a “Moderate Buy” consensus rating and an average price target of $358.97, despite mixed target-price revisions from other firms.
• Lam Research reported strong quarterly results, beating earnings and revenue estimates with revenue up 30% year over year; however, declining China exposure, export restrictions, rising yields and premium valuation remain risks.

Lam Research (NASDAQ:LRCX - Get Free Report) had its price objective dropped by analysts at UBS Group from $435.00 to $425.00 in a research report issued on Tuesday, Benzinga reports. The firm presently has a "buy" rating on the semiconductor company's stock. UBS Group's target price would suggest a potential upside of 45.66% from the stock's current price.

Several other research analysts also recently commented on LRCX. Wall Street Zen downgraded Lam Research from a "buy" rating to a "hold" rating in a report on Sunday, May 10th. Bank of America increased their target price on Lam Research from $330.00 to $480.00 and gave the company a "buy" rating in a report on Tuesday, June 23rd. Sanford C. Bernstein raised their price target on Lam Research from $325.00 to $340.00 and gave the stock an "outperform" rating in a research report on Thursday, May 21st. Citigroup reaffirmed a "buy" rating and issued a $450.00 price target (up from $315.00) on shares of Lam Research in a research note on Wednesday, June 17th. Finally, B. Riley Financial lowered their price objective on Lam Research from $385.00 to $350.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-six have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $358.97.

Lam Research Price Performance

Shares of Lam Research stock opened at $291.77 on Tuesday. The company has a debt-to-equity ratio of 0.30, a quick ratio of 1.91 and a current ratio of 2.63. Lam Research has a 52-week low of $94.11 and a 52-week high of $438.50. The company has a fifty day moving average of $328.26 and a 200-day moving average of $290.09. The stock has a market capitalization of $365.10 billion, a price-to-earnings ratio of 50.84, a price-to-earnings-growth ratio of 1.20 and a beta of 1.84.

Lam Research (NASDAQ:LRCX - Get Free Report) last issued its earnings results on Wednesday, July 29th. The semiconductor company reported $1.82 EPS for the quarter, topping analysts' consensus estimates of $1.69 by $0.13. The company had revenue of $6.72 billion for the quarter, compared to analysts' expectations of $6.66 billion. Lam Research had a net margin of 31.27% and a return on equity of 67.60%. The firm's revenue was up 30.0% compared to the same quarter last year. During the same quarter last year, the company earned $1.33 EPS. Lam Research has set its Q1 2027 guidance at 2.000-2.300 EPS. Equities research analysts expect that Lam Research will post 9.33 EPS for the current year.

Insider Buying and Selling

In other news, Director Eric Brandt sold 54,500 shares of Lam Research stock in a transaction that occurred on Thursday, June 11th. The stock was sold at an average price of $350.80, for a total value of $19,118,600.00. Following the sale, the director directly owned 199,205 shares in the company, valued at approximately $69,881,114. This trade represents a 21.48% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Abhijit Y. Talwalkar sold 18,282 shares of the business's stock in a transaction that occurred on Monday, July 13th. The shares were sold at an average price of $335.00, for a total value of $6,124,470.00. Following the transaction, the director directly owned 87,142 shares in the company, valued at $29,192,570. This trade represents a 17.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.31% of the company's stock.

Institutional Trading of Lam Research

Large investors have recently added to or reduced their stakes in the stock. Bayban bought a new stake in shares of Lam Research during the 4th quarter valued at about $26,000. Vermillion Wealth Management Inc. bought a new position in Lam Research in the first quarter worth about $26,000. Cedar Mountain Advisors LLC raised its stake in Lam Research by 242.9% in the first quarter. Cedar Mountain Advisors LLC now owns 120 shares of the semiconductor company's stock worth $26,000 after buying an additional 85 shares in the last quarter. Paladin Partners LLC purchased a new stake in Lam Research in the second quarter worth about $26,000. Finally, Mcguire Capital Advisors Inc. purchased a new stake in Lam Research in the fourth quarter worth about $27,000. Institutional investors own 84.61% of the company's stock.

More Lam Research News

Here are the key news stories impacting Lam Research this week:

• Positive Sentiment: Analysts upgraded Lam Research in a “buy the pullback” view, citing the company’s exposure to continued semiconductor capital spending and the potential for recovery after its summer decline. Lam Research: Buy The Summer Pullback (Rating Upgrade)
• Positive Sentiment: Lam Research raised its dividend by 27%, reinforcing confidence in cash generation and returning capital to shareholders. The company’s latest quarter also showed strong momentum, with revenue up 30% year over year and earnings exceeding consensus estimates. Lam Research Stock Is Trending After Dividend Raised 27%
• Positive Sentiment: AI-chip demand and broader semiconductor production expansion continue to support equipment spending, while Erste Group expects increased earnings for Lam Research. Erste Group Bank Expects Increased Earnings for Lam Research
• Neutral Sentiment: Industry commentary remains constructive on the semiconductor investment cycle, including strong demand for AI chips and advanced manufacturing equipment. This supports Lam Research indirectly but primarily reflects conditions at peer ASML. Does ASML’s Dominant Position in EUV Signal Further Upside?
• Negative Sentiment: Lam Research’s China exposure is declining, which could reduce a source of near-term revenue, while export restrictions and geopolitical risks remain overhangs for semiconductor-equipment stocks. Lam Research: Chinese Exposure Is Falling, But So Might The Share Price
• Negative Sentiment: Rising yields are pressuring the broader semiconductor group and may lead investors to reassess premium valuations, making LRCX vulnerable despite its strong earnings outlook. Semiconductor Stocks Slide as Global Bond Selloff Lifts Yields

About Lam Research

Lam Research Corporation NASDAQ: LRCX is a global supplier of wafer fabrication equipment and services to the semiconductor industry. Founded in 1980 by David K. Lam and headquartered in Fremont, California, the company develops and manufactures systems used in multiple stages of semiconductor device production, including thin film deposition, plasma etch, wafer cleaning and related process modules and automation.

Lam's product portfolio covers core process technologies employed by logic and memory manufacturers, with equipment designed to support advanced-node patterning, 3D NAND and other emerging device architectures.

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