RBC Capital Raises Price Target on Applied Materials (AMAT) Ahead of 3Q Report
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RBC Capital reiterated a Sector Perform rating on Applied Materials (NASDAQ: AMAT), and raised the price target to $28.00 (from $26.00) ahead of the company's 3Q earnings report.
Analyst Amit Daryanani commented, "We expect AMAT to report modest upside to revenue and EPS for July-quarter. We are modeling revenue/EPS $2.85B/$0.48 vs. Street $2.84B/$0.48. We expect total orders in July to decrease -15% sequentially to $2.97B, driven by -5% declines in SSG ($1.87B), 5% growth in AGS ($711M), and -50% q/q decline in FPD ($350M) and EES ($43M) orders. We expect foundry orders to grow 24% q/q to $560M and logic to grow 12% q/q to $243M in July-quarter driven by 10nm ramps at TSMC and Intel. We model -15% q/q in NAND orders ($822M), and see a -27% q/q decline in DRAM ($243M). Based on peer commentary and reports so far, we think AMAT will maintain its flattish WFE outlook for CY16, and become incrementally more cautious on DRAM. We maintain our SP rating but raise our PT to $28 (15x multiple from 14x as we expect a beat and raise)."
Shares of Applied Materials closed at $27.47 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesRBC Capital, Earnings
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