Needham analyst Charles Shi maintained a Buy rating on Applied Materials (AMAT – Research Report) today and set a price target of $195.00.
Confident Investing Starts Here:
- Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Charles Shi’s rating is based on several factors that highlight the potential for growth in Applied Materials’ business. Despite the company’s recent revenue reports and forecasts being slightly below consensus estimates, there are positive indicators in specific segments. The ICAPS revenue is expected to increase quarter-over-quarter, driven by demand from China, which suggests a strong market presence and potential for growth in that region.
Additionally, while DRAM revenue is anticipated to decline, NAND revenue is projected to grow, indicating a mixed but potentially favorable outlook in different product lines. Although the advanced packaging revenue has stabilized at a lower run rate, the overall diversification in revenue streams and the potential for growth in certain areas contribute to the Buy rating. These factors, combined with the current macroeconomic conditions, suggest that Applied Materials is positioned to capitalize on future opportunities, justifying the positive outlook.
In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $190.00 price target.