Lam Research slips on Bernstein downgrade, citing valuation concerns
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Lam Research (NASDAQ:LRCX) shares slipped slightly more than 1% in early trading on Monday after investment firm Bernstein downgraded the semiconductor capital equipment company.
Analyst Stacy Rasgon lowered his rating on Lam Research (LRCX) shares to market perform, noting that while wafer fab equipment spending is expected to only decrease 20% year-over-year to $78B, memory is still the weakest part of the semiconductor industry, making Lam Research (LRCX) shares vulnerable, given their valuation.

"[Lam Research] is more expensive, and it has been near our Target price for some time; given we believe there remains considerable uncertainty around memory it feels prudent to move to the sidelines for now though we continue to like the longer term story," Rasgon wrote in an investor note.
Rasgon added that he prefers Applied Materials (AMAT) given its lower exposure to the memory market and cheaper valuation, as well as its stronger backlog.
Lam Research (LRCX) recently appointed Pat Lord into the newly created position of executive VP and COO, effective earlier this month.