Ticker (Exchange) – LRCX (NASDAQ)
ISIN – US5128073062
Current Price – $75.5
Target Price – $95.1
Growth Potential – 26.0%🔥
Dividend Yield – 1.1%💵
Investment Horizon – 1 year
Lam Research is an American company providing equipment and services used in semiconductor chip manufacturing. The rising trend in artificial intelligence (AI) supports high demand for the company’s products, positively impacting its financial performance. After a significant correction, Lam Research shares are trading at an attractive valuation, creating a good buying opportunity. The fair price for the company's stock is $95.1, with a growth potential of 26%. The dividend yield is 1.1%.
Investment Thesis
🔼 Strong Financial Performance. Lam Research posted strong results in Q3 2024. Revenue rose 19.7%, reaching $4.17 billion. Adjusted earnings per share (EPS), accounting for a 10-to-1 split, increased 28.4% to $0.86. Both metrics exceeded market expectations. Lam Research also provided an optimistic forecast for Q4 2024, with projected revenue at $4.3 billion and adjusted EPS at $0.87, again surpassing analysts' estimates.
🔼 Attractive Valuation. Following a notable share price correction this summer, Lam Research is trading at 21.2 times expected annual earnings, which is below the sector median and lower than peers like Applied Materials and ASML Holding N.V.
🔼 Dividends. The company shares its profits with shareholders through quarterly dividend payments. The current payout is $0.23 per share, translating to a dividend yield of 1.1%.
🔽 Risks. A significant portion of the company’s revenue (37%) is generated in China. Deteriorating relations between Washington and Beijing could lead to a decline in sales.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
ISIN – US5128073062
Current Price – $75.5
Target Price – $95.1
Growth Potential – 26.0%🔥
Dividend Yield – 1.1%💵
Investment Horizon – 1 year
Lam Research is an American company providing equipment and services used in semiconductor chip manufacturing. The rising trend in artificial intelligence (AI) supports high demand for the company’s products, positively impacting its financial performance. After a significant correction, Lam Research shares are trading at an attractive valuation, creating a good buying opportunity. The fair price for the company's stock is $95.1, with a growth potential of 26%. The dividend yield is 1.1%.
Investment Thesis
🔼 Strong Financial Performance. Lam Research posted strong results in Q3 2024. Revenue rose 19.7%, reaching $4.17 billion. Adjusted earnings per share (EPS), accounting for a 10-to-1 split, increased 28.4% to $0.86. Both metrics exceeded market expectations. Lam Research also provided an optimistic forecast for Q4 2024, with projected revenue at $4.3 billion and adjusted EPS at $0.87, again surpassing analysts' estimates.
🔼 Attractive Valuation. Following a notable share price correction this summer, Lam Research is trading at 21.2 times expected annual earnings, which is below the sector median and lower than peers like Applied Materials and ASML Holding N.V.
🔼 Dividends. The company shares its profits with shareholders through quarterly dividend payments. The current payout is $0.23 per share, translating to a dividend yield of 1.1%.
🔽 Risks. A significant portion of the company’s revenue (37%) is generated in China. Deteriorating relations between Washington and Beijing could lead to a decline in sales.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
