CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our target by $130 to $907, 25.5x our FY 2025 (Jun.) EPS view, near peers but well above LRCX’s three-year average (~17x) on rising AI excitement and an improving memory market outlook. We shift our focus to FY 2025 given expectations of accelerated activity during the year, with node advancements expected in 2024 and subsequent ramps boosting business in 2025, along with our expectation of consistent growth in DRAM to support high-bandwidth memory/AI. We raise our FY 2024 EPS view by $0.03 to $29.36 and our FY 25 view by $0.49 to $35.57, supported by bullish peer commentary in the memory space. We initiate our FY 2026 view at $45.49. Despite positive business fundamentals, we think LRCX remains too pricey to upgrade to Buy at current levels. We think investor enthusiasm around AI has created a high bar for LRCX as it looks to translate increased excitement and activity into earnings beats, especially in the near term given relatively modest growth expectations (mid-single digits) for WFE in 2024.