Goldman Sachs Upgrades Applied Materials (AMAT) to Buy

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Goldman Sachs upgraded Applied Materials (NASDAQ: AMAT) from Neutral to Buy with a price target of $13.00 (from $11.50) citing a potential restructuring.

The firm believes the recent addition of Gary Dickerson as President is "a significant positive for the company and likely marked the end of the multi-year underperformance in Applied Materials' stock."

Goldman believes that with new management there will be a more thorough assessment of the cost structure.

"We estimate that if the company restructures more significantly in areas such as display and exits the solar business, that this could add $0.15 or more to full-cycle EPS."

Also, a more streamlined cost structure could help the company gain share in its core market.

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 $11.28 yesterday, with a 52 week range of $9.70-$13.94.

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