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Semiconductor equipment maker Lam Research (LRCX)  on Tuesday received a stock price target upgrade from analysts at Citi, who cited "improving memory supply-demand balance" as reason to expect its share price to move higher in the coming months.

In a research note to clients, Citi analyst Atif Malik reiterated his buy rating on the company and raised his one-year price target on the stock to a Wall Street high of $330 from $282.

"We believe that improving memory supply-demand balance will continue to lift Lam's outlook for NAND and DRAM investments into 2020," Malik wrote. "Overall, we like stocks such as LRCX that are more leveraged to higher memory spend growth next year as foundry and logic spend likely flattens in 1H20."

Strong demand for its equipment in China, specifically related to the rollout of 5G technology, "is creating lots of demand" for Lam Research's chips, TheStreet's Real Money Pro contributor Bruce Kamich wrote in a recent research note

"This is still very much a strong 2020-outer year earnings-driven story as the cycle moves back into their favor," Jim Cramer and the Action Alerts PLUS team wrote following the company's quarterly earnings results last month, which topped analysts' estimates.

Shares of the Fremont, Calif.-based chipmaker were down 0.87%, or $2.41 a share, at $275.69 in morning trading.

Lam Research is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells LRCX? Learn more now.