Merrill Lynch Believes LRCX Still Has Room to Grow

By Austin Angelo

In a report released today, Krish Sankar from Merrill Lynch reiterated a Buy rating on Lam Research (NASDAQ: LRCX), with a price target of $115. The company’s shares opened today at $104.91, close to its 52-week high of $107.25.

According to, Sankar is ranked 0 out of 5 stars with an average return of -5.1% and a 45.3% success rate. Sankar covers the Technology sector, focusing on stocks such as Advanced Energy Industries, Applied Materials, and Kla-Tencor Corp.

Currently, the analyst consensus on Lam Research is Strong Buy and the average price target is $111.27, representing a 6.1% upside.

In a report released today, UBS also reiterated a Buy rating on the stock with a $116 price target.

Based on Lam Research’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $1.65 billion and quarterly net profit of $264 million. In comparison, last year the company earned revenue of $1.6 billion and had a net profit of $289 million.

Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock. Most recently, in September 2013, Krishna Saraswat, a Director at LRCX sold 1,000 shares for a total of $49,690.

Lam Research Corp. engages in the manufacture and service of wafer processing semiconductor manufacturing equipment. Its products include front-end wafer processing, back-end wafer-level packaging, and other related products. The company also designs, manufactures, markets, refurbishes, and services semiconductor processing systems that are used in the fabrication of integrated circuits. Lam Research was founded by David Lam on January 21, 1980 and is headquartered in Fremont, CA.