Applied Materials (AMAT) PT Raised to $140 at Stifel Ahead of Earnings

Stifel analyst Patrick Ho raised the price target on Applied Materials (NASDAQ: AMAT) to $140.00 (from $107.00) ahead of earnings this Thursday.

The analyst reiterated a Buy rating, stating "We expect the company to exceed our estimates and likely provide an outlook above our recently raised forecasts (in December). We expect management to provide a bullish tone for 2021, but our favorable long-term thesis is based on our view that the company is well positioned to outgrow overall industry rates on a sustainable basis. We maintain our view that the company is positioned to see market expansion in key segments and continue to gain share, driving an increase in total WFE share. While Applied is on track to $6.00 in EPS, we believe as WFE trends higher ($75-80B) longer term, $7.00 and higher are achievable targets. With that in mind, we are raising our target price to $140 (from $107), which reflects 20x our pro-forma EPS of $7.00, based on $25B in revenue."

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