Cowen Remains Positive on Applied Materials (AMAT) Amid Increased Shareholder Returns; Sees on Track to Meet/Exceed Current Metrics

Cowen and Company affirms an Outperform rating and $26 price target on Applied Materials (Nasdaq: AMAT) after the company announced a new $2 billion share repurchase program and quarterly dividend on Thursday night.

Analyst Timothy Arcuri commented, Applied Materials is on track to meet or exceed most of the current metrics in the existing 2018 financial model, and we are arguably back to a situation where Applied Materials could lay out a $2.50 or even $3/share EPS scenario at its Analyst Meeting on 9/21 given now 5 factors: 1) This new share authorization, 2) OLED vectors (AAPL + TV ramp + SAM expansion), 3) China semis (should add ~$2-3B/yr to WFE and add ballast), 4) foundry mix shift (10/7nm is a lot more exciting/economically attractive than 20/16nm), and 5) Samsung capex trajectory (we think semis capex is down >50% this year, likely to snap back in '17).

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

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