Bank of America Securities analyst Vivek Arya reiterated a Buy rating on Applied Materials (AMAT – Research Report) today and set a price target of $190.00.
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
Vivek Arya has given his Buy rating due to a combination of factors that highlight Applied Materials’ strategic positioning and financial prospects. Despite some challenges in trailing-edge exposure and moderating China sales, the company is well-positioned to capitalize on growth in leading-edge technologies and advanced DRAM sales, which are expected to increase significantly. Arya notes that Applied Materials has shown consistent growth over the past five years, which adds to its appeal as an investment.
Furthermore, the valuation of Applied Materials is considered attractive, with its enterprise value to free cash flow ratio being lower than its peers. The company is also poised to capture a significant share of the serviceable available market in new technology inflections, such as gate-all-around and backside power. Additionally, the company’s integrated product solutions and robust capital returns, including a dividend increase and a substantial share buyback program, further support the Buy rating.
In another report released today, Needham also maintained a Buy rating on the stock with a $195.00 price target.
Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMAT in relation to earlier this year.