Analyst Stacy Rasgon of Bernstein maintained a Buy rating on Applied Materials (AMAT – Research Report), with a price target of $230.00.
Stacy Rasgon has given his Buy rating due to a combination of factors surrounding Applied Materials’ recent performance and future outlook. The company’s fiscal first quarter results surpassed expectations, with revenues and EPS outperforming consensus predictions, driven by strong demand in China for DRAM and sustained investments in lagging edge technologies. Additionally, the guidance for the second quarter remains robust, suggesting that the momentum in DRAM, which is particularly buoyed by high-bandwidth memory (HBM) demand, is expected to continue for at least another quarter.
Looking beyond the immediate financials, Rasgon’s positive stance on Applied Materials is reinforced by the company’s strategic positioning within the wafer fabrication equipment (WFE) space. The company is well-aligned with key technological inflections and has a wide array of process offerings, which is complemented by their focus on integrated solutions and broad R&D collaborations with customers. These factors reinforce Applied Materials’ competitive edge and potential for share gains. Moreover, the company’s valuation remains attractive relative to its large-cap peers, further justifying the Outperform rating and an increased target price.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $245.00 price target.
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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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