Oppenheimer has adjusted its price target for Lam Research (LRCX, Financial), reducing it from $95 to $80, while maintaining an Outperform rating on the stock. This revision comes as part of a broader re-evaluation of semiconductor capital equipment expectations, leading to a modest cut in revenue and earnings per share (EPS) projections.
The firm has lowered its estimates for Lam Research for both 2025 and 2026, with revenue and EPS forecasted to drop by 0.3% for 2025. For 2026, the anticipated revenue and EPS reductions are more significant, at 5% and 7%, respectively. The updated projection now places 2026 revenue at 7% below market consensus, with an expected decline of 3%, contrasting earlier growth estimates of 2%.
Oppenheimer attributes these adjustments to a deteriorating macroeconomic environment and policy challenges. Despite a doubling of the wafer fab equipment (WFE) market size from 2019 to 2024, which reached $100 billion, ongoing volatility is anticipated in the near term.
Nevertheless, Lam Research's strong positioning in deposition and etch technologies, advancements in artificial intelligence packaging tools, robust management, and strategic capital returns are highlighted as factors supporting its long-term investment potential.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for Lam Research Corp (LRCX, Financial) is $95.09 with a high estimate of $125.00 and a low estimate of $75.00. The average target implies an upside of 43.15% from the current price of $66.43. More detailed estimate data can be found on the Lam Research Corp (LRCX) Forecast page.
Based on the consensus recommendation from 30 brokerage firms, Lam Research Corp's (LRCX, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lam Research Corp (LRCX, Financial) in one year is $68.85, suggesting a upside of 3.64% from the current price of $66.43. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lam Research Corp (LRCX) Summary page.
