Barclays Maintains an 'Overweight' on Applied Materials (AMAT); Visibility Remains Limited, but Valuation Already Reflects Muted 2012 Outlook
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Price: $507.18 --0%
Rating Summary:
37 Buy, 10 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 19
Rating Summary:
37 Buy, 10 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 7 | Down: 12 | New: 19
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Barclays maintains an 'Overweight' on Applied Materials (NASDAQ: AMAT) price target of $16.00.
Barclays analyst says, "We Look for Uneventful Call, with Focus on the Timing of an Order Inflection: While we continue to see risk to consensus estimates for 2H11/CY12 (we cut our estimates on July 15), we believe these headwinds have been largely baked into investor expectations. We see improving macro conditions and/or visibility to an order inflection in SPE as the keys to driving a rebound in the shares, but do not anticipate clarity on either front from the earnings call. We maintain our $16 price target (13x our CY12 EPS), but see a range-bound performance over the near term."
"We See Relatively Inline July Quarter: We model slightly above consensus
revenues/EPS of $2.70B/$0.35 (street $2.68B/$0.33, guide $2.6-2.8B/$0.31-0.37) and order decline of -20% to $2.55B led by weakening Silicon (-20%) and solar/EES (-39%) coupled with only moderate declines in AGS (-5%) and Display (-12%)."
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 $11.68 yesterday.
Barclays analyst says, "We Look for Uneventful Call, with Focus on the Timing of an Order Inflection: While we continue to see risk to consensus estimates for 2H11/CY12 (we cut our estimates on July 15), we believe these headwinds have been largely baked into investor expectations. We see improving macro conditions and/or visibility to an order inflection in SPE as the keys to driving a rebound in the shares, but do not anticipate clarity on either front from the earnings call. We maintain our $16 price target (13x our CY12 EPS), but see a range-bound performance over the near term."
"We See Relatively Inline July Quarter: We model slightly above consensus
revenues/EPS of $2.70B/$0.35 (street $2.68B/$0.33, guide $2.6-2.8B/$0.31-0.37) and order decline of -20% to $2.55B led by weakening Silicon (-20%) and solar/EES (-39%) coupled with only moderate declines in AGS (-5%) and Display (-12%)."
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 $11.68 yesterday.
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