Shares of Lam Research Corp. were down 3.4% in premarket trading Wednesday after Evercore ISI analyst C.J. Muse downgraded the stock to in-line from outperform, arguing that a memory recovery now may not happen until the second half of calendar 2020. He had previously expected a first-half rebound. “At a bigger picture level, there is no change to our view on Lam – a high quality company with superior earnings power through cycles – just that the severity of the current memory correction combined with timing of a recovery leads us to see a better buying opportunity ahead,” Muse wrote. “Amidst ever worsening pricing across both DRAM and NAND and industry participants moving closer and closer to cash costs, we now are hearing about delays not only in capacity adds but also technology buys.” He cut his price target on the stock to $195 from $225. Shares are up almost 40% so far this year, as the S&P 500 has gained 15%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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