Kirk, LRCX delivered an outstanding quarter results today, but here is another article that is definitely not a "bull" on LRCX.
<<Citi Maintains a 'Sell' on Lam Research (LRCX); Great Company, Raising PT on Higher Ests But Fail to See the 'Buy' Thesis
July 28, 2010 11:14 AM EDT
Citi maintains a 'Sell' rating on Lam Research Corp (LRCX), raises PT from $32 to $36.
Citi analyst says, "We continue to see shipments peaking in CQ3 and starting to fade as chip factory utilization moderates – albeit slightly for now – in CQ4.
Owing to the higher CQ3 shipment base, however, we are raising our F2011 rev/EPS ests to $2,505MM/$3.58 from $2,200MM/$2.75, but we are still notably below Street $2,703/$3.85...
On the back of what has been solid execution in the clean business, we now see normalized EPS of $2.25 versus our prior $2.00. Using the same 13x multiple and adding back ~$7 cash we arrive at $36 target which continues to justify our Sell.
Further, while this should be a solid Q and execution is strong, shipment guidance of flat to +10% shouldn’t necessarily knock anybody’s socks off esp at this price.">>
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