Lam Research stock gains after Mizuho initiates coverage with buy rating

Shares of Lam Research Corp. LRCX, -0.56% are up 2.1% in premarket trading Tuesday after Mizuho analyst Vijay Rakesh initiated coverage of the stock with a buy rating and a $250 price target. "The best is probably yet to come as we believe 2019 could see multiple new mega-fabs and potential China spend," Rakesh wrote. He has an upbeat outlook on growth in wafer fabrication equipment (WFE) given heightened memory spending. Lam is "benefitting from increasing capital intensity in NAND and DRAM and increased 10nm logic spend," Rakesh wrote. Shares of Lam Research closed up 6.1% in Monday's session and are up 68% over the past 12 months, compared with a 14% gain for the S&P 500 SPX, +0.37%