This week the Valens Securities team highlights our most interesting equity insight from across our tools and our analysis.
Lam Research Corporation (LRCX): Market expectation are for a negative cycle, but LRCX’s strong execution, industry tailwinds, and management confidence about their business and industry spell reasons for equity upside
LRCX currently trades at a very inexpensive 9.2x UAFRS adjusted P/E (V/E’). At these levels, the company is trading at the bottom end of the Semiconductor Equipment segment’s V/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.