The less-good news is that earnings growth had recovered from a fiscal third-quarter dip in March, but the outlook for the December quarter is lower sequentially, and sales are also expected to dip through the end of the June quarter. Lam is not expected to get a significant boost from increased federal support for the tech industry.
Of 26 brokerages covering Lam Research, the stock is rated as a Buy or Strong Buy by 16 and a Hold by the other 10. The consensus price target is $500.00, and at a recent price of around $490.80, the upside potential is 1.9%. At the high target of $620.00, the upside potential is about 26.3%.
Fiscal second-quarter revenue is forecast at $5.08 billion, up 0.2% sequentially and by 20.1% year over year. Adjusted EPS are forecast at $10.00, down 4.0% sequentially but 17.2% higher year over year. For the 2023 fiscal year ending in June, analysts expect Lam Research to report EPS of $34.44, up 4%, on sales of $18.1 billion, up 5%.
Lam Research stock trades at 14.2 times expected 2023 EPS, 18.0 times estimated 2024 earnings of $27.33 and 13.9 times estimated 2025 earnings of $35.19 per share. The stock’s 52-week range is $299.59 to $623.24. The company pays an annual dividend of $6.90 (yield of 1.41%). Total shareholder return over the past year is negative 18.9%.
Tesla
Despite a year-to-date gain of more than 16%, shares of Tesla Inc. (NASDAQ: TSLA) are down about 54.5% over the past 12 months. The company’s tribulations have been attributed partly to CEO Elon Musk’s preoccupation with Twitter and growing competition from legacy automakers that are finally getting their electric vehicles out the door.
The company’s recent price cuts brought most of its models under the roof of a $7,500 federal tax credit for buyers of certain EVs. Tesla raised the lowered price tag of its Model Y to $53,490 on Monday night, an increase of $500 from the previous price of $52,990. Tesla has a lot of margin to play with and has a good chance to keep the pressure on new entrants to the market. Now, the company has to figure out a way to beat BYD in China.
Sentiment toward Tesla remains bullish. Of 34 analysts covering the stock, 20 have a Buy or a Strong Buy rating and 10 more have Hold ratings. At a share price of around $144.20, the implied upside based on a median price target of $183.00 is 26.9%. Based on a high price target of $320.00, the upside potential is nearly 122%.
Analysts expect Tesla to post fourth-quarter revenue of $24.26 billion, up nearly 30% sequentially and by almost 37% year over year, and adjusted EPS of $1.11, up 5.8% sequentially and 30.6% higher year over year. For the full 2022 fiscal year, estimates call for EPS of $3.95, up nearly 75%, on sales of $81.54 billion, up 51.5%.
Tesla stock trades at 36.7 times expected 2022 EPS, 33.2 times estimated 2023 earnings of $4.38 and 24.2 times estimated 2024 earnings of $6.02. The stock’s 52-week range is $101.81 to $384.29. Tesla does not pay a dividend. Total shareholder return over the past year is negative 53%.
Originally published at 24/7 Wall St.
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