Applied Materials (AMAT): New Guidance Is Still Too Conservative - Nomura
- BAT Reaches Deal to Acquire Reynolds American (RAI) for $49 Billion
- Trump, Brexit uncertainty hit stocks and dollar, gold jumps
- Noble Energy (NBL) to Acquire Clayton Williams Energy (CWEI) for $2.7B in Cash and Stock
- UnitedHealth Group (UNH) Tops Q4 EPS by 4c; Affirms Outlook
- Oil rises on weaker dollar, Saudi commitment to cut output
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
Nomura Securities analyst, Romit Shah, reiterated his Buy rating on shares of Applied Materials (NASDAQ: AMAT) after the company published a new financial model that showed a path to $2.80 and $3.17 of EPS in 2019 on WFE spending of $34.5b and $37b. The new model shows significant upside from the company’s previous estimate of $2.00 in FY 2018, but the analyst management is still being conservative with its outlook.
Applied expects to grow from a FY 2016 EPS of $1.75 to $2.80 based on revenue increasing from $10.8b in 2016 to $13.5b in 2019 (+$0.98), gross margin from 43.3% to 44.6%, operating expenses from $2.4b to $2.6b, taxes drop to 11% and a the company executes a $2b buyback.
No change to the price target of $31.
Shares of Applied Materials closed at $30.57 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Goldman Sachs Upgrades Pinnacle West Capital (PNW) to Neutral
- Barclays Downgrades Chiasma (CHMA) to Underweight
- Morgan Stanley Upgrades The Michaels Companies (MIK) to Overweight Citing Valuation
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Management Comments
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!