Analyst Atif Malik of Citi maintained a Buy rating on Applied Materials (AMAT – Research Report), with a price target of $170.00.
Atif Malik has assigned a Buy rating to Applied Materials (AMAT) after considering a variety of underlying elements. The rating reflects an anticipation that the company’s earnings per share (EPS) for the January quarter will align with the Street’s expectations, while the EPS for the April quarter is projected to be modestly below due to a decrease in ICAPS sales, attributed to reduced utilization rates at mature foundries. Despite this, there is an expectation of favorable market-related commentary similar to that of peers, with an uptick in memory and stable logic sectors this year.
The positive outlook is bolstered by investors’ keen interest in several key areas: the contribution from High Bandwidth Memory (HBM) and overall advanced packaging sales, which includes the introduction of new digital lithography systems forecasted to follow a year of sales surpassing $1 billion. Additionally, the display market’s outlook appears promising, especially in light of KLA’s recent withdrawal from the Flat Panel Display (FPD) business. Another factor influencing Malik’s Buy rating is the projected improvement in gross margins as the proportion of domestic sales in China decreases over the year.
According to TipRanks, Malik is a top 25 analyst with an average return of 31.7% and a 72.31% success rate. Malik covers the Technology sector, focusing on stocks such as Apple, Marvell, and Nvidia.
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Applied Materials (AMAT) Company Description:
Founded in 1967, Applied Materials, Inc. is a California-based company which provides manufacturing equipment, services, and software solutions to the semiconductor, display, and related industries to produce new chip and advanced display. It operates through the following segments: Semiconductor Systems, Applied Global Services, and Display and Adjacent Markets.
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