- With shares up nearly 60% in the past six months, Deutsche Bank downgrades Lam Research (NASDAQ:LRCX) from Buy to Hold but raises the price target by $100 to $500.
- Analyst Sidney Ho sees "a number of risk factors," including the potential for muted NAND chip capex in 2021 and short-term supply chain disruption from the U.S. export restrictions on Chinese chip giant SMIC.
- The firm thinks Lam is still "well positioned to continue to outgrow the WFE market in the next few years," but Deutsche is looking for a more attractive entry point.
- LRCX shares are down 0.9% to $488.79. Below is a look at Lam's returns compared to the S&P 500 and broader tech sector over the past six months.
- U.S.-based semi equipment names Lam Research, KLA, and Applied Materials derive a large portion of annual sales from China and China-related news is one of the common catalysts for share movements in the space.
