Stifel Affirms 'Buy' Rating on Lam Research (LRCX) on Higher China Wafer Demand

Lam Research Corporation (NASDAQ:LRCX) is one of the top tech stocks with a strong return on equity. On July 31, analysts at Stifel reiterated a ‘Buy’ rating on the semiconductor equipment maker and raised the price target to $115 from $110.

The stock price target hikes follow Lam Research delivering impressive quarterly results that exceed consensus estimates on revenues and earnings. The solid results were driven by record foundry segment results, backed by strong demand from China and increased NAND upgrades.

Stifel expects the strong momentum from Lam Research’s results to continue into the second half of the year. The research firm is projecting higher quarter-over-quarter revenue supported by higher China wafer fabrication equipment spending. Likewise, the research firm expects the company’s revenue to grow by approximately 30% this year, with systems revenue increasing at a significantly higher rate.

Lam Research Corporation (NASDAQ:LRCX) is a technology company that designs, manufactures, and services semiconductor processing equipment used in the fabrication of integrated circuits. It focuses on wafer fabrication, providing tools and services for chipmakers to produce smaller, faster, and more efficient electronic devices.

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Disclosure: None. This article is originally published at Insider Monkey.