Robertson Stephens lowered its investment rating on Lam Research LRCX
to market perform from buy.
Analyst Sue Billat says that she believes Lam is likely to underperform its peers in early part of next upcycle, given its heavy exposure to the metal and polysilicon etch markets, which are not technology-driven. She also cites a combination of excess inventory, weak execution on spares and service business.
Although Billat expects Lam to report in line with her $0.15 fourth quarter EPS estimate on $325 million in revenues, she cut her $0.48 fiscal 2002 (June) EPS estimate to $0.06 and trimmed her $21 price target to $20.