Pacific Crest maintained an Overweight rating on Applied Materials (NASDAQ: AMAT) but trimmed its price target to $23.00 (from $27.00). Analyst Weston Twigg still likes the stock but thinks shares could be range-bound for a while.

"AMAT recorded its largest bookings since 2Q11 on 3D NAND strength, but foundry weakness is a concern. Shares are likely range-bound until logic and foundry demand improves. We are lowering estimates and price target to $23," said Twigg.

"We are concerned that foundry demand is softening due to end-market weakness, which could last several quarters. Worse, if 16/14 nm ramps slow down, and 10 nm capacity is limited to smaller pilot lines next year, foundry capex could decline in 2016. We also expect Intel's capex to remain low next year as it maximizes equipment reuse amid low PC demand," added the analyst.

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 $17.05 yesterday.