Analysts Think Applied Material's (AMAT) New President Can Turn the Tide

June 20, 2012 2:37 PM EDT
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Applied Materials (Nasdaq: AMAT) recently announced Gary Dickerson as the new president. Over the past five years, Applied Materials has underperformed its closest peers by 46 percent, but that underperformance could soon change. Analysts at Goldman Sachs said this management announcement could mark the end of the multi-year history of underperformance at AMAT.

Dickerson will be responsible for managing the company’s four business units, and he will report to CEO Mike Splinter. Mr. Dickerson was the CEO of Varian Semiconductor from 2004 until it was acquired by Applied Materials in November 2011. He had previously worked for many years at KLA-Tencor, including in the roles of president and chief operating officer.

“We believe this update is a significant positive for the company given Mr. Dickerson’s strong track record and industry experience,” said James Covello, analyst at Goldman Sachs Equity Research.

Goldman Sachs maintained their Neutral rating and $11.50 price target on AMAT.

For an analyst ratings summary and ratings history on Applied Materials click here. For more ratings news on Applied Materials click here.

Shares of Applied Materials closed at $11.18 yesterday.

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