HSBC Gives Lam Research (LRCX) Hold Rating

Lam Research Corporation (NASDAQ:LRCX) is one of the 11 Best American Semiconductor Stocks to Invest In. On September 30, HSBC began covering Lam Research Corporation (NASDAQ:LRCX), giving the stock a Hold rating and setting the price target at $127.

HSBC pointed out that Lam Research Corporation (NASDAQ:LRCX) is expected to benefit from growing demand for wafer fabrication equipment.

The research firm expects Lam Research Corporation (NASDAQ:LRCX) to achieve a compound annual growth rate of 15.7% in diluted EPS from fiscal years 2025 to 2030.

However, HSBC cautioned that near-term revenue growth could slow down. This is because growth in wafer fab equipment spending is expected to be sluggish because of tough comparisons in the foundry and NAND end markets.

The firm also noted that Lam Research Corporation (NASDAQ:LRCX) gained more than 30% in September, which suggests that the stock’s price may already reflect much of the expected gains.

Lam Research Corporation (NASDAQ:LRCX) is a global supplier of wafer fabrication equipment and services to the semiconductor industry.

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