Lam Research (NASDAQ:LRCX) Earns "Underweight" Rating from Morgan Stanley

Key Points

• Morgan Stanley has reiterated an "underweight" rating for Lam Research, lowering its target price to $92.00, indicating a potential downside of 8.14% from the previous closing price.
• Despite the underweight rating from Morgan Stanley, twenty analysts rate Lam Research with a "Buy" rating, while a few others give "Hold" and "Sell" ratings, leading to an overall consensus of a "Moderate Buy" with an average price target of $107.22.
• Lam Research recently reported a quarterly earnings per share (EPS) of $1.33, surpassing estimates and reflecting a significant year-over-year revenue growth of 33.6%.

Lam Research (NASDAQ:LRCX - Get Free Report)'s stock had its "underweight" rating reiterated by analysts at Morgan Stanley in a research note issued on Tuesday,Benzinga reports. They presently have a $92.00 target price on the semiconductor company's stock, down from their prior target price of $94.00. Morgan Stanley's target price would suggest a potential downside of 8.14% from the company's previous close.

Several other research firms also recently weighed in on LRCX. Wells Fargo & Company set a $98.00 price objective on shares of Lam Research and gave the stock an "equal weight" rating in a report on Thursday, July 31st. Raymond James Financial upped their price objective on shares of Lam Research from $90.00 to $110.00 and gave the stock an "outperform" rating in a report on Thursday, July 31st. Citigroup upped their price objective on shares of Lam Research from $108.00 to $113.00 and gave the stock a "buy" rating in a report on Friday, August 1st. Barclays set a $83.00 price objective on shares of Lam Research and gave the stock an "equal weight" rating in a report on Monday, July 28th. Finally, The Goldman Sachs Group assumed coverage on shares of Lam Research in a report on Thursday, July 10th. They set a "buy" rating and a $115.00 price objective on the stock. Twenty analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $107.22.

Lam Research Trading Down 3.8%

NASDAQ:LRCX opened at $100.15 on Tuesday. The firm's fifty day moving average is $99.62 and its 200-day moving average is $85.43. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.55 and a current ratio of 2.21. Lam Research has a 52 week low of $56.32 and a 52 week high of $108.02. The firm has a market cap of $126.75 billion, a P/E ratio of 24.07, a P/E/G ratio of 1.29 and a beta of 1.76.

Lam Research (NASDAQ:LRCX - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The semiconductor company reported $1.33 EPS for the quarter, beating analysts' consensus estimates of $1.21 by $0.12. Lam Research had a net margin of 29.07% and a return on equity of 58.17%. The company had revenue of $5.17 billion for the quarter, compared to analyst estimates of $4.99 billion. During the same period in the prior year, the firm posted $1.03 EPS. The company's quarterly revenue was up 33.6% on a year-over-year basis. Lam Research has set its Q1 2026 guidance at 1.100-1.300 EPS. Equities analysts expect that Lam Research will post 3.71 earnings per share for the current year.

Hedge Funds Weigh In On Lam Research

Institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in Lam Research by 1.1% during the second quarter. Vanguard Group Inc. now owns 130,609,265 shares of the semiconductor company's stock worth $12,713,506,000 after purchasing an additional 1,457,163 shares during the period. State Street Corp boosted its position in Lam Research by 1.1% during the second quarter. State Street Corp now owns 59,551,547 shares of the semiconductor company's stock worth $5,810,172,000 after purchasing an additional 629,666 shares during the period. JPMorgan Chase & Co. boosted its position in Lam Research by 14.4% during the second quarter. JPMorgan Chase & Co. now owns 40,622,437 shares of the semiconductor company's stock worth $3,954,188,000 after purchasing an additional 5,102,589 shares during the period. Geode Capital Management LLC boosted its position in Lam Research by 3.5% during the second quarter. Geode Capital Management LLC now owns 33,802,736 shares of the semiconductor company's stock worth $3,280,484,000 after purchasing an additional 1,135,405 shares during the period. Finally, Norges Bank bought a new position in Lam Research during the second quarter worth about $1,894,585,000. Institutional investors own 84.61% of the company's stock.

About Lam Research

Lam Research Corporation designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. The company offers ALTUS systems to deposit conformal films for tungsten metallization applications; SABRE electrochemical deposition products for copper interconnect transition that offers copper damascene manufacturing; SOLA ultraviolet thermal processing products for film treatments; and VECTOR plasma-enhanced CVD ALD products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.