AP
Lam Research shares rally after Goldman upgrade
Tuesday June 24, 11:20 am ET
Lam Research shares rise after Goldman upgrades stock on drop in capital spending, valuation
NEW YORK (AP) -- Shares of Lam Research Corp. jumped Tuesday after an analyst upgraded the semiconductor manufacturing equipment maker, citing in part a drop in capital spending and valuation.
The stock gained $1.92, or 5.3 percent, to $37.95 in the morning session.
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Goldman Sachs analyst James Covello boosted his rating of the Fremont, Calif., company to "Buy" from "Sell" and placed it on the investment bank's Conviction Buy list.
The upgrade comes the day after the stock touched a 52-week low of $35.98.
"While we have been negative on Lam for the last 24-36 months given the company's high exposure to memory capital expenditures, we are now comfortable in taking an aggressive view on the stock," Covello said in a note to clients.
He cited a likely drop in cuts to DRAM capital expenditures, valuation -- shares are down 17 percent so far this year -- and a potential jump in orders from Asia-based companies.
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