UBS Cuts Price Target on Applied Materials (AMAT) to $18.75 as Foundry Weakness Continues
Get Alerts AMAT Hot Sheet
Rating Summary:
32 Buy, 10 Hold, 1 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 4 | Down: 4 | New: 2
Join SI Premium – FREE
UBS maintained a Neutral rating on Applied Materials (NASDAQ: AMAT), and cut the price target to $18.75 (from $20.50), as foundry weakness continues. Analyst Stephen Chin said that foundry weakness is likely to limit upside in the near-term. AMAT's Jul-15 results were in-line with guidance, with NAND orders more than doubling to a record high of $783m. AMAT lowered '15 WFE outlook of flat y/y (was up ~3% previously) due to foundry spend.
Chin commented, "We keep a Neutral rating on Applied despite record 3D-NAND semicap order momentum, as foundry weakness likely limits upside in the near-term. Applied's Jul-15 results were in-line with guidance, with the most impressive execution from NAND orders more than doubling to a record high of $783m, which was mostly 3D-NAND and likely Toshiba/Sandisk. A key takeaway was Applied's reiterated view that 3DNAND will have another growth year in '16 with 300k wpm installed vs. 150k this year. We were not surprised with Applied's lower '15 WFE outlook of flat y/y (was up ~3% previously) due to foundry spend, as KLA already reported its Jun-15 foundry orders were down -58% q/q. We believe Applied should benefit from 10nm pilot orders but this will likely be in 2016 and we would look to review our investment thesis again."
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 $17.05 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Meta Platforms Inc. (META) PT Lowered to $540 at Jefferies, 'Buy the Zuck Shopping Cart Dip'
- Matador Resources Company (MTDR) PT Raised to $78 at JPMorgan
- Meta Platforms Inc. (META) PT Lowered to $565 at Bernstein SocGen Group, 'We’re buyers of the pullback here'
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst PT ChangeRelated Entities
UBSSign 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!