Needham & Company Maintains a 'Buy' on Applied Materials (AMAT); Weak Outlook on Marco Slowdown, but Historical Data Suggests Stock Should be Bottoming

Needham & Company maintains a 'Buy' on Applied Materials (NASDAQ: AMAT) price target lowered from $16 to $13.

Needham analyst says, "We maintain our rating after AMAT reported slightly better F3Q11 (Jul) results but provided disappointing guidance. While expectation was low going into the call, we believe the substantially weaker guidance is incrementally more negative for AMAT and the industry, and expect the order/revenue weakness to persist at least through the January quarter. However, we note that the stock tends to bottom 1-2 months ahead of the fundamentals, and we suspect the stock will start to move higher as signs of orders reaching a bottom emerge. We recommend longer-term investors be prepared to buy the stock."

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 $11.36 yesterday.

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