This week the Valens Securities team highlights our most interesting equity insight from across our tools and our analysis.
Even after LRCX’s dramatic rise over the past year, market expectations appear entirely too pessimistic, considering the company’s execution and macro tailwinds
LRCX currently trades at a very inexpensive 6.9x UAFRS-based P/E (Fwd V/E’). At these levels, the company is trading at the bottom end of the Semiconductor Equipment segment’s Adjusted P/E. The market clearly appears to be pricing in a negative cycle for LRCX in the near-term. However, there are several reasons that the market expectation is incorrect and too pessimistic.