Deutsche Bank Starts Applied Materials (AMAT) at Hold; Two Steps Forward, One Step Back

Deutsche Bank initiates coverage on Applied Materials (NASDAQ: AMAT) with a Hold. PT $10.00.

Deutsche analyst says, "With shares trading below prior trough book valuation and at the low end of historical P/E valuation range, we see relatively low downside risk from current levels. We expect AMAT to emerge as the primary beneficiary of rising nonlitho capital intensity at the 2x nm node and also see greater emphasis on integrated solutions to enable share gains at the next generation nodes. That being said, we believe downside risk to consensus estimates, primarily due to weaker than expected fundamentals in the EES segment could remain an overhang on the shares and limit share price outperformance."

"We forecast FY12 EPS of $0.60 versus consensus of $0.76 – our estimates reflect below consensus industry growth expectations in semis and solar segment."

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 $10.16 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Cantor Fitzgerald Reiterates Overweight Rating on Applied Materials (AMAT)
• Applied Materials (AMAT) PT Lowered to $650 at BofA Securities, 'our top semicap pick is LRCX'
• Raymond James Starts SpyGlass Pharma (SGP) at Outperform