Auriga Maintains a 'Hold' on Applied Materials (AMAT); Analyst Day: Upbeat Tone with Execution & Share Gains Highlighted

Auriga maintains a 'Hold' on Applied Materials (NASDAQ: AMAT).

Auriga analyst says, "As we look to 2011, the semiconductor and solar spending cycles are forecasted to be up Y/Y, which bodes well for AMAT. While we believe AMAT has been taking the right steps to rebuild, restructure and refocus its business model (evident by recent share gains), we believe that shares reflect the Company’s progress and semiconductor industry’s rising capital intensity."

"Management reaffirmed its F2Q11 of flat to up 5% in sales and non-GAAP EPS of $0.34-$0.38 and FY2011 guidance of sales >$11B and non-GAAP EPS of >$1.50. Additionally, the Company provided an optimistic 2012 wafer fab equipment (WFE) forecast of $32B-$37B, from 2011’s estimated $34B-$36B. This flattish Y/Y outlook is based on memory picking up its spending patterns, while foundry subsides a bit next year."

For more ratings news on Applied Materials click here and for the rating history of Applied Materials click here.

Shares of Applied Materials closed at $15.16 yesterday.

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