Goldman Sachs Maintains a 'Buy' on Applied Materials (AMAT) on Potential Future Restructuring

Goldman Sachs maintains a 'Buy' on Applied Materials (NASDAQ: AMAT) price target of $13.00.

Analyst, James Covello, said, "AMAT reported revenue of $2.34 bn (-8% qoq), consistent with its negatively revised guidance, 2% above GS and 1% above the Street. Operating EPS of $0.24 was $0.03 above GS and $0.02 above the Street. Upside vs. GS was driven by higher sales, 4% lower opex, and 2% lower shares, partly offset by a 40 bp lower gross margin and 100 bp higher tax rate. Orders declined by 35% qoq. 3QCY12 (October) guidance for revenue to decline 25%-40% qoq (implies $1.41 to $1.76 bn) and EPS of $0.00-$0.06 is significantly below the Street at $1.94 bn/$0.12. We reduce our CY12 EPS to $0.60 from $0.70 on lower sales, and maintain CY13 EPS at $0.60."

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 $11.80 yesterday.

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