Deutsche Bank analysts provided their outlook on Lam Research Corporation (NASDAQ:LRCX) ahead of the upcoming earnings announcement, expecting Q1 results and Q2 guidance to be generally in line with the Street estimates.
According to the analysts, supply constraints have continued to ease and deferred revenues ($2.2 billion in Q4) should make the H2/22 relatively safe. However, sharp cuts in CAPEX and utilization by memory peers, as well as incremental technology restrictions on China, add significant risks to the business into 2023.
The analysts expect 2023 revenues to decline 15% year-over-year (vs. 8% decline prior) and 2023 revenues to be up 1% year-over-year (vs. up 5% prior), leading to 2023/2024 EPS of $28.00/$30.00 (vs. $32.00/$35.00 prior). As a result, the analysts lowered their price target to $400 from $480, while maintaining their hold rating.